BRASÍLIA – Brazil’s Congress yesterday passed a bill paving the way to privatising state-controlled Eletrobras, the biggest electric utility in Latin America, in a victory for far-right President Jair Bolsonaro’s privatisation agenda.
The bill, which sets up a share issue that will dilute the government’s stake in the company, passed the lower house by a vote of 258 to 136.
Lawmakers must still vote on a series of amendments before sending it to Bolsonaro.
It has already passed the Senate.
The legislation will reduce the government’s stake in Eletrobras from 51.82% to 45% via a share issue pencilled in for early next year that the state estimates will raise 25 billion reais (RM20.72 billion).
The government will, however, retain a “golden share” in the firm, giving it the final say on strategic matters.
Created in 1962, Eletrobras is one of Brazil’s “Big 4” state-controlled companies, along with oil firm Petrobras, and banks Banco do Brasil and Caixa Economica Federal.
Bolsonaro’s ultra-liberal economy minister, Paulo Guedes, has said the privatisation will save Brazilians up to 7.4% on electricity. – AFP, June 22, 2021
