August 21, 2017 / 9:37 PM / a year ago

Brazil proposes Eletrobras privatization; model yet to be defined

SAO PAULO, Aug 21 (Reuters) - Brazil’s Mines and Energy Ministry will propose President Michel Temer to privatize power holding company Centrais Elétricas Brasileiras SA, the boldest move yet by a government struggling to close a swelling budget deficit.

In a securities filing, the utility known as Eletrobras said it was informed by the ministry of the plan, which will be sent to the president’s council for state asset divestitures. Given that Eletrobras is listed and has non-government shareholders, the plan will require a careful analysis, the filing said.

Neither the model of privatization nor terms for the plan have yet been decided, the filing said. Eletrobras is one of the state-controlled companies involved in a series of massive corruption scandals, and has for years been used as a source for politically appointed jobs. (Reporting by Guillermo Parra-Bernal; editing by Diane Craft)

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