EBR - Brazil's Eletrobras files for $7.4B privatization offering
Eletrobras (NYSE:EBR) officially launched its privatization bid on Friday, filing a request with Brazil's securities regulator that could raise as much as 35B reais ($7.4B), which would make it the country's second largest offering on record. The offering is comprised a primary offering of more than 627.67M new shares and a secondary offering of ~69.8M shares currently held by state development bank BNDES. The Brazil government's stake in Eletrobras (EBR) is expected to fall below 50% of voting stock after the offering, which is set to price on June 9, according to the filing. A group of investors has signaled early interest in scooping up ~13B reais in shares, Bloomberg reports. Worried that market volatility could increase as the October presidential gets nearer, the government had pushed for a quick sale.
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Brazil's Eletrobras files for $7.4B privatization offering