Eletrobras says government approves privatization model

• Eletrobras (EBR -1%) says Brazil's government officially approved the utility's privatization, by floating shares to dilute the state's 61% holding.
• The government's stake will be cut to 45% or less while it retains a golden share to veto hostile takeovers and preventing any other shareholder from owning more than 10%.
• Two Eletrobras units will be split off and kept under government control: Eletronuclear, which manages Brazil's two nuclear reactors and is building a third; and the country's largest hydroelectric dam Itaipu, a joint venture with Paraguay.
• Besides approving the privatization model, the decision sends a clear signal that Brazil is committed to privatizing Eletrobras to help reduce its budget deficit, a government official tells Reuters.
• Eletrobras' Q2 earnings call presentation