Bombshell: Eletrobras Has Just Been Handed Over to Private Initiative by the Federal Government

In a Growing Wave of Privatizations Happening in Brazil, It Is Now Eletrobras’ Turn to Be Handed Over to Private Initiative

[supsystic-social-sharing id=’1′]It Took a While, but Now the Guillotine Has Also Reached Eletrobras. The Ministry of Mines and Energy Just Announced in Official Communication Channels the Most Colossal Privatization Under the Temer Administration. With the Sale of the Largest Publicly Traded Company Under Federal Government Control, the Estimate Is That the Presidency Will Pocket Around R$ 20 Billion.

There Were Speculations, but They Waited for the Stock Market to Close to Announce the News. This Happened Recently (Monday, August 21). Contrary to the Original Idea, the Company Will Be Sold in Its Entirety. Initially, There Was Talk of Selling in Sectoral Parts, Such as Distribution, Generation, and Transmission.

Realizing That Investors Were Not Showing Interest in the Company and Its Distributors, the Decision to Sell Them as a Unified Asset Was Made, Including the Subsidiaries in a Birthday Package for the Market.

Very Similar to the Privatization Process That Took Place at Embraer in 1994, Which Is Quite Profitable Nowadays under Private Management, Eletrobras Is Expected to Go Through the Same Privatization System.

This Entire Process Is Expected to Take Approximately 200 Days from the Sanction Date. The Government Currently Holds 63% Control, After Privatization, It Will Hold 47% of the Shares and Putting Money into Public Coffers (We Hope That This Money Will Really Go There, Right?).

Why Will Eletrobras Be Privatized?

During the Lula Administration, Eletrobras Became One of the Largest Companies in the Electricity Sector in the Country, but with Debts Accumulating Around R$ 38.5 Billion, It Is No Longer Able to Bear the Tax Burden and the Misuse of Public Transfers. Source: G1, Folha, O Globo.

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