Eletrobras looking at capitalizing Treasury advances

“SAO PAULO (Reuters) – Brazilian state-run utility Centrais Eletricas Brasileiras SA said on Monday it is discussing with the government capitalizing 3.9 billion reais ($950 million) in advances for future capital increases received from the Treasury in recent yeas” writes Midwest Communications Inc for “If and when that the operations goes ahead, shareholders will have preferential rights,” the company said in the filing.Eletrobras said in a securities filing, however, that the management hasn’t taken a decision yet, which will require approval by the executive and the board.If the operation is agreed to, those loans would become capital and be removed from the company’s debt load.That would dilute the state’s stake in the company, a plan that has met with opposition from politicians.

Related posts