EBR - Eletrobras rallies as Brazil audit court clears privatization stage

Eletrobras (EBR +2.7%) adds to Tuesday's gains after Brazil's TCU audit court approved concession fees the state-run company must pay the government to continue operating some hydroelectric dams after its privatization, and agreed with the methodology used by the government to calculate Eletrobras' privatization grant bonus. The company must pay the concession fees once it is privatized, renewing its current license to operate the power plants for another 30 years. The approvals remove key barriers to the market capitalization that is part of handing control of the utility to private investors. In the utility's privatization, the federal government's stake will be cut to 45% or less while it retains a golden share to veto hostile takeovers.

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Eletrobras rallies as Brazil audit court clears privatization stage