One year after privatization, investors who used FGTS at Eletrobras see an 8.5% drop in shares

[ad_1]

For analysts, Lula’s criticism of the sale of the state-owned company negatively influences the stock’s performance. Losses only happen if shareholders redeem the investment, which can now be done. One year after the privatization of Eletrobras, the company’s shares fell by 8.5%, contrary to the initial predictions of specialists. This variation does not consider the dividends distributed by the company in the period. Privatization of Eletrobras: see questions and answers Do you want to use the FGTS to buy Eletrobras shares? See questions and answers about the operation Sold at R$ 42 in June last year, the shares of the electric company closed this Wednesday (14) at R$ 38.44 around 10 am on Wednesday (14). Variation of Eletrobras shares in one year TradeMap The drop in the share price does not necessarily mean that investors suffered a loss. This only happens if they decide to sell (redeem) their stake in the company at a time when the price is below the purchase price. The privatization of Eletrobras was proposed by the management of former President Jair Bolsonaro via a provisional measure, which was approved with amendments by Congress in June 2021. The text was converted into law in July of that year with presidential sanction. Analysts estimate that the statements by President Luiz Inácio Lula da Silva, who is trying to reverse the privatization of Eletrobras, had a negative influence on the performance of the shares (see further down in this report). By the rules of the privatization process, those who invested their Severance Indemnity Fund (FGTS) can redeem it twelve months after the application, that is, the operation is already available. The resources, however, would return to your FGTS linked account, and can only be withdrawn in the cases provided for by law – such as, for example, in retirement or for the purchase of your own home. ‘Almost banditry’ In February of that year, President Lula criticized the Eletrobras privatization process, which he called “erratic”, “damaging the country” and “almost banditry”. For Lula, the terms of the privatization of Eletrobras are “leonine” against the government because they prevent the Union from regaining shareholder control of the company. “It was almost like a banditry so that the government does not acquire a majority in Eletrobras again. We, including, possibly the attorney general of the Union, [ele] will go to court so that we can review this leonine contract against the government”, said the president, on the occasion. points of privatization of Eletrobras. The government questions the parts of the law of privatization of Eletrobras that deal with the voting power of shareholders. The government understands that the law irregularly reduced the weight of votes to which it would be entitled. The public power has 42, 61% of the common shares of Eletrobras. But, due to the law of privatization of Eletrobras, the proportion of votes of the government was limited to 10%. This is because the privatization transformed Eletrobras into a “corporation”, a private capital company with no controlling shareholder Therefore, no shareholder has a voting power greater than 10%, even with a greater number of common shares.The mechanism was included in the privatization law to prevent a private group, for example, from taking control of the company. According to Einar Rivero, commercial director of the TradeMap platform, Lula’s statements and the government’s actions influenced the share price. “The statements of a person who has the caliber of our president end up influencing and bringing insecurity, which causes prices to fall. But I do not believe that privatization will be reversed, as that would be giving an absurd message to foreign investors: ‘don’t stay in Brazil anymore, it’s not safe’. It would be dangerous for something like that to happen”, declared Rivero, to g1. Use of FGTS The director of TradeMap noted that thousands of shareholders have already withdrawn their FGTS from Eletrobras investments at the end of last year when, according to him, it was possible for there to be a migration of resources to free portfolio funds managed by independent managers. In June of last year, when the application with FGTS resources was opened, there were almost 372 thousand quota holders, a number that dropped to around 330 thousand this month. An exit of more than 40 thousand investors in one year. Number of FGTS holders with investment in Eletrobras TradeMap “People with less knowledge of the market ended up [na Eletrobras]not doing [a migração para outros fundos de investimento no fim do ano passado]. Those who know a little about the market end up migrating to protect their assets”, evaluated Einar Rivero. Despite President Lula’s statements, the analyst still believes that the investment of FGTS resources in the company can yield good results in the future. By law , the FGTS yields 3% a year. According to him, privatized Eletrobras tends to be more agile and efficient than under state control. “But don’t expect that to happen in a month, five months, that’s it forward, more in the long term,” he concluded. Eletrobras’ privatization model is criminal as it takes decision-making power away from the government, says minister

[ad_2]

Source link