Brazil’s Senate approves Eletrobras privatization bill
Jun. 17, 2021 5:56 PM ETCentrais Elétricas Brasileiras S.A. - Eletrobrás (EBR)EBR, EBR.BBy: Carl Surran, SA News Editor3 Comments
- Eletrobras (NYSE:EBR) +4.7% post-market after Brazil's Senate votes to approve the basic text of a bill allowing the privatization of the state-controlled company.
- The legislation would float shares on the stock market, with the government giving up control by diluting its current 61% stake, raising ~25B reais ($4.95B) in the process.
- The Senate version passed today raises the thermal gas plant requirement to 8,000 MW from 6,000 MW to include regions closer to where gas is produced, reducing imports.
- The measure must return to Brazil's lower house for final passage due to the changes made by senators, and the house Speaker has called an extra session on Monday to vote on the bill.
- The lower house had approved its original version of the privatization bill last month.