Brazil's Bolsonaro, Eletrobras CEO meet over privatization, shares hit record

SAO PAULO: Brazilian President Jair Bolsonaro is meeting with the chief executive of state-controlled Centrais Eletricas Brasileiras SA, known as Eletrobras, on Thursday, sending the company's share price to a record high on hopes it might be privatized.

Eletrobras said late on Wednesday that the company's "potential privatization" would be discussed. According to the company, its Chief Executive Officer Wilson Ferreira Jr was invited by Mines and Energy Minister Bento Albuquerque to discuss the issue with Bolsonaro in the presidential palace.

The company declined further comment on Thursday as did the The Ministry of Mines and Energy.

Bolsonaro was elected last year on an economic platform that included aggressive pro-market reforms, including a privatization program. The government has not yet released the model for the power company's privatization but the Ministry of Mines and Energy has stated it would involve issuing new shares to inject capital, reducing the government's stake to a minority position.

In a recent TV interview, Albuquerque said the government could raise 18 billion reais ($4.68 billion) in such a deal.

Eletrobras preferred shares advanced about 5% on Thursday afternoon.

Eletrobras is responsible for almost one third of the generational capacity and half of Brazil's power transmission grid.