Eletrobras Privatization: Furnas Board Decides on Future of Operation
Investment in a holding company with the participation of the Eletrobras subsidiary needs to be approved for the capitalization, scheduled for the 13th, to materialize
By the end of last week, the expectation was that the Board of Directors of furnas met this Monday, the 6th, to decide whether the company assumes the cost of a court decision of almost 1.6 billion reais from one of its associates, Madeira Energia (MESA). The holding, with 43% of the capital of Furnas, a subsidiary of electrobras, lost a lawsuit against one of its controlled companies, Santo Antônio Energia, and now has to pay the costs of the lawsuit. The decision, however, was delayed. On Sunday, the 5th, the Furnas Employees Association obtained a favorable injunction to suspend the holding of the meeting.
The decision was made by a judge on duty at the Rio de Janeiro Court of Justice, Isabel Teresa Pinto Coelho Diniz. In her order, she says that “despite the debenture holder being able to exercise the right to vote, I have, through this narrow way of the Night Duty, that the advance contribution of the first defendant (Furnas) of R$ 681,446,626.81, without approval of the AGD (General Assembly of Debenture Holders) may characterize the termination of the debenture contract”.
Last Thursday, the 2nd, Furnas made a contribution of 681 million reais in Madeira Energia. According to the company, the injection of funds was carried out “as a result of the full exercise of its preemptive right within the scope of the capital increase of Madeira Energia SA (“MESA”), as approved at the extraordinary general meeting of MESA held on April 29 of 2022”. Approval for the other 900 million reais is now pending, which should be decided on Monday.
The market remains confident in relation to the green light from the company’s debenture holders. The capitalization of Eletrobras is scheduled for the next day 13. A little earlier, on the 9th, the share price should be defined. The reserve for the purchase of the energy giant’s papers started last Friday, the 3rd, and goes until the next Wednesday, the 8th. The capitalization should move around 30 billion reais.