How to use FGTS to buy Eletrobras shares during capitalization

With the advance of Eletrobras’ capitalization process, workers will be able to use the FGTS resources (Fundo de Garantia por Tempo de Serviço) to buy the shares of the company that will be offered.

Brazilians who live in the country and have funds in the FGTS will be able to use up to 50% of the balance available in the fund for the acquisition of shares, through investments in quotas of the Mutual Privatization Funds (FMP) .

This mechanism was created in 2009 as a possibility for workers to invest in new applications, based on certain rules. It was made available, for example, during the privatization process of Petrobras and Vale do Rio Doce, in which workers with accounts linked to the FGTS were able to guarantee shares in these companies.

Caixa Econômica Federal published in March this year an operational manual for the application of FGTS resources in this fund.

How to use FGTS to buy shares?

The rules for handling the FGTS account depend on each privatization decision of the National Privatization Program (PND), in addition to requiring specific authorization on the use of the FMP.

Resolution No. 203/2021 of the Investment Partnership Program Board authorized the conditions for privatization of Eletrobras. According to Caixa, the expectation is that they will be moved until BRL 6 billion by the FMP-FGTS.

Caixa explained that a date on the launch of the offer will still be announced and, from that moment on, the holder of the FGTS account will have to register the option to formalize the request for application of the fund’s values ​​in the public offer.

After formalizing the request, interested parties must forward to Caixa the request for a reserve request for the purchase of shares.

In the case of the purchase of shares in Petrobras and Vale do Rio do Doce by the Mutual Privatization Funds with the FGTS, Caixa provides information on the initial investment required, the target audience, the annual management fee and even the profile of risk.

Workers can check on the bank’s website by clicking on here.

Capitalization progress

The launch date for the application of FGTS resources in Eletrobras shares depends on the progress of the company’s capitalization process. The Federal Audit Court (TCU) approved, last Wednesday (18), by majority, the continuation of the process, but there are still steps to be completed.

The government’s expectation is that the process will be completed by July, as further delays may complicate the privatization of the company due to the election year calendar, according to analysts.

Among the steps in the company’s sale schedule is the definition by the Investment Partnerships Program Board (CPPI) of the minimum share price.

The newspaper The State of São Paulo disclosed that the banks that are advising on the offer do a market reading and submit the evaluation to Eletrobras and BNDES.

According to the newspaper, then there is an internal approval process for the seller, and then the offer will be launched through a sales prospectus.

stocks up

The conclusion of the TCU’s analysis caused the company’s common shares (ELET3) to end Thursday (19) with an appreciation of 3.45%, at R$ 44.06. Class B preferred paper (ELET6) rose 2.54% to R$43.20.

The economics analyst CNN Thais Herédia says that, immediately, there may even be a drop, since there are still definitions and procedures for the continuity of the privatization process.

However, in the medium and long term, the perspective is that there will be appreciation, due to the policy that includes a series of obligations that were not in the original plan of this process.

Brokers and banks estimate that the share will reach an average price of R$ 54.11, an appreciation of more than 20% this year.