Brazil's Electricity Giant Eletrobras Privatized

SAO PAULO, (UrduPoint / Pakistan Point News - 15th Jun, 2022 ) :Brazil on Tuesday marked the privatization of the largest publicly-owned electricity company in Latin America, Eletrobras, with a ceremony at the Sao Paulo Stock Exchange.

President Jair Bolsonaro participated in the ringing of the bell that marked the finalization of the sale of the company, which was created in 1954 by then president Getulio Vargas and put into operation in 1962 during the mandate of Joao Goulart.

The sale brought in 29.29 billion reals (5.7 billion U.S. Dollars), marking the second most-profitable privatization since the Vale mining company was sold in 1998.

The privatization of Eletrobras was one of the priorities of the current Brazilian government, which had a 72 percent stake in the company. Following the sale, which included issuing new shares, the government will hold close to a 45 percent stake.

Among the top new shareholders are the Canada Pension Plan Investment board (CPPIB) and Singapore's state investment fund GIC (Government Investment Corporation).

"It is a historic day for Brazil because a state-owned company leaves the scene and the largest renewable energy corporation in Latin America enters the scene, with renewed investment capacity," said Mines and Energy Minister Adolfo Sachsida.

Economy Minister Paulo Guedes said the privatization was necessary to boost investment. "Eletrobras no longer needs the protection of the state," he added.

The process of selling shares began Thursday and on Monday, the company's new format debuted, with a minority share by the state, in the B3 index of the Sao Paulo Stock Exchange, Latin America's largest.