Brazil to unveil Eletrobras privatization measure on Tuesday

The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the NYSE in New York
FILE PHOTO: The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019. REUTERS/Brendan McDermid

February 23, 2021

By Luciano Costa

SAO PAULO (Reuters) – Brazil’s government on Tuesday will unveil a provisional measure associated with its plans to privatize state-run electricity provider Eletrobras, three sources with knowledge of the matter told Reuters.

The minister of economy and energy, Paulo Guedes and Bento Albuquerque will go to Congress to deliver the text of the measure to the leaders of Congress at 7:30 p.m. (2230 GMT), Senate head Rodrigo Pacheco’s office said.

Preferred and common shares in Eletrobras soared after the Reuters report. Preferred shares rose more than 11% by late afternoon trading, extending their 2.4% gain when the report was published.

The provisional measure would allow development bank BNDES to work on the privatization of the company, and will likely appear published in an extraordinary edition of the federal gazette on Tuesday, the sources said.

One source said that should “signal” to the market President Jair Bolsonaro’s commitment to the sale after his decision to change the chief executive of state-run Petrobras led to doubts over his divestiture plans.

(Reporting by Roberto Samora; Editing by Alistair Bell)