Brazil approves capital increase in Eletrobras for privatization plan

The Government of Brazil has approved the proposed capital increase for the state utility, Eletrobras, as it prepares for the company privatization.

Brazil is set to inject up to BRL10 billion in Eletrobras with BRL4 billion to sourced from the Federal government. The capital increase clears the balance sheet of the company and improves its investment capacity. 

The Union owns 41% of the shares of the state and will not have its participation diluted in the process. If the rest of the minorities will join, the government's share will increase up to 42.59%. If only 20% of the minority shareholders are willing to but the new shares, the government will only have 44.93%.

In January 2018, the government has started the process of the privatization of the company.