Eletrobras shares closed higher in the trading session this Thursday (9), before the pricing of its shares in the privatization process was determined. Common assets (ELET3) rose 2.14% to R$43.04, while those known as preferred (ELET6) rose 2.09% to R$42.50.
The demand for the papers, according to analysts interviewed by Reuters, was close to R$ 70 billion, twice the value projected for the offer. The price will be set based on supply demand. The transaction’s prospectus considered the share price to be R$44, the closing price when the transaction was launched.
Analysis of the economics analyst of the CNN Priscila Yazbek also shows that brokers and banks estimate that the shares will reach an average price of R$ 54.11, an appreciation of more than 20% this year.
The expectation is that negotiations on B3 will begin next Monday (13).
With the capitalization process, the government will give up the largest share of the state-owned company, opening the way for it to have control of independent shareholders. The operation, according to calculations by the federal government, should move around R$67 billion and the Union expects to raise at least R$25 billion.
THE Eletrobras is Latin America’s largest power generation and transmission company, and could become a major player in the energy transition after the billion-dollar share offering scheduled this week to remove the government from control of the company, marking the largest privatization of a company in Brazil in more than 20 years.
purchase of shares
The deadline for workers to reserve Eletrobras shares using the balance of the FGTS (Fundo de Garantia do Tempo de Serviço) ended on Wednesday (8).
However, the bank informed that, for those who missed the deadline, there is no expectation of returning this possibility, since it depends on several legal procedures to be authorized.
Sought, Eletrobras informed, in a note, that “any new information in this regard will be formally communicated to the market”.
According to experts, if the worker has missed the deadline, they will no longer be able to carry out the operation via the fund. “It is still possible to buy shares in the company, but no longer using FGTS resources”, explains Gustavo Fabricio, partner at RPS Capital.
Understand capitalization
When talking about privatization in Brazil, there is always the understanding that the Federal Government will sell a certain company to a group or company that pays the highest price.
This is not the case with Eletrobras. Its privatization will take place via the capital market: that is, the company’s shares will be dispersed among several shareholders. The government is the majority controller, with more than 70% of the shares. He will continue to be the majority shareholder, but will gain several partners through this sale.
Eletrobras will sell new shares on the market, gradually diluting the government’s share — until it holds 45%. The process ends up being a privatization because Eletrobras is no longer managed as a state-owned company, as it is today.
The company is now managed as a holding company, in which the government remains the majority shareholder, but most of its capital is diluted in the private sector.
In this way, conditions are created to provide greater investment capacity for the state-owned company, with efficiency gains, cost reductions and safer and more efficient service provision.
Eletrobras is responsible for 30% of the generation and almost 40% of the energy transmission in the country today, having been higher in the past, but ended up reducing the market because it lost investment and management capacity.
*With information from Reuters and CNN Brasil Business
Source: CNN Brasil
