October 17, 2019 / 12:38 AM / 8 months ago

Brazil's Eletrobras says share offer could raise $1.2 billion

SAO PAULO, Oct 16 (Reuters) - Brazilian state-run power firm Centrais Eletricas Brasileiras SA estimated that it could raise up to 5.1 billion reais ($1.23 billion) via the potential issue of 9.99 billion reais worth of shares, according to a company presentation released Wednesday night.

If the company, commonly known as Eletrobras, raises the full 9.99 billion reais, it estimates a minimum of 4.05 billion reais of the new shares would be associated with the so-called APACs programme. That is a mechanism which allows debt accumulated through loans by the federal government to convert into equity capital in Eletrobras, reducing the firm's debt load.

That scenario assumes the participation of 100% of the company's minority shareholders.

If 60% of minority shareholders participate, according to the presentation, the company would raise 1.9 billion reais.

On Monday, Eletrobras said it had approved a general shareholders meeting to decide upon the capital increase.

$1 = 4.15 reais Reporting by Roberto Samora; Writing by Gram Slattery; Editing by Christian Schmollinger

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below