Eletrobras says it will evaluate measure to guarantee confidence – 05/08/2023 – Market

Eletrobras said this Monday (8), after the government filed a lawsuit against its privatization, that it will assess measures that may eventually have to be adopted in order to maintain a reliable environment for carrying out its investments and the legal security of shareholders and the market in general.

The AGU (Attorney General of the Union) filed a direct action of unconstitutionality last Friday (5th) at the STF (Federal Supreme Court) claiming that the government has voting power in the company proportional to its shareholding in the electricity company.

Although it holds approximately 43% of Eletrobras’ common shares, the Union is subject to the prohibition for a shareholder or group of shareholders to cast votes in excess of 10% —a rule included to avoid movements to assume control of the company, which today has dispersed capital .

In a statement, the company stated that the government regaining preponderance in shareholder deliberations goes against the legal and economic assumptions that underlie the market’s investment decisions —including the thousands of workers holding FGTS accounts—, based on modeling developed by the Union itself. .

The company also stated that the privatization process “faithfully followed all the legally foreseen procedures” and recalled that there are already four other actions of unconstitutionality related to the subject, without an injunction being granted that would impact the consummation of the privatization.

On Saturday (6), President Luiz Inácio Lula da Silva indicated that he intends to present new questions about the privatization of the electric company, even after the AGU action.