Justice suspends Eletrobras distributor's auction at AM – 12/07/2018 – Market



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A decision taken on Friday (7) by the Amazonian federal justice could hinder the privatization of the distributor of Eletrobras in the Amazon.

The auction of the company is scheduled for this Monday (10) in São Paulo at 17 hours.

If the injunction is not canceled in time, the event will have to be canceled, which would make it more likely. extinction of society.

Wanted by Folha Eletrobras and BNDES (responsible for the sale process of state-owned distributors) have not yet responded.

The possible liquidation of the company is considered the worst case by the representatives of the electricity sector. The situation could jeopardize the continuity of service in the state, besides the billionaire's transfer of responsibilities from the distributor to his parent company, Eletrobras, in addition to possibly causing mbadive dismissal of employees.

To guarantee energy supply, the government is already preparing an interim measure that would allow the temporary hiring of a new operator for the company, currently controlled by Eletrobras.

The auction of Amazonas Energia has already been postponed several times. However, it could no longer be postponed because the measure should be approved by the shareholders of Eletrobras, which is temporarily operating the company.

Although the government is a majority shareholder, the state-owned company is listed on the São Paulo Stock Exchange.

The company is considered the most complicated and the least attractive of the distributors offered for sale by Eletrobras, mainly because of its billionaire liabilities.

The judicial decision of this sixth bans the auction because it suspends the effects of a decision of the Aneel (National Agency of Electric Power) which authorized the division of the subsidiary of Eletrobras to Amazonas in two parts : that of distribution, which would be sold, and other generation and transmission, which would remain public.

The judge also declared suspended any "act of alienation from the control of the shareholding and badets of Amazonas Distribuição de Energia S.A.".

"It should also be remembered that the rapid disposition of strategic public holdings threatens the electricity supply of thousands of low-income consumers, especially in remote areas," he added. the magistrate.

Regardless of the judicial suspension, there are doubts on the market as to the success of the auction, with the possibility that no group will submit an offer.

The Amazonian group Oliveira Energia, which has already bought the Eletrobras distributor in Roraima and has already announced its intention to study the company in the Amazon, has been designated as interested.

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