Eletrobas sells power distribution arm at auction, assumes $3.3 billion debt

Dec 17, 2018
Companies
Posted by Patrick Haddad

Brazillian state-owned power utility Eletrobas has sold its power distribution subsidiary Amazonas Energia at auction but will assume $3.3 billion in debt before passing it on.

The Brazilian consortium Oliveira Energia-Atem, who had previously purchased another distribution company from Eletrobas, was the sole bidder at the auction. Oliveira Energia-Atem paid a symbolic amount of around $12,700 and will also assume just over $561 million in debt.

The auction’s result, however, could not be validated yet because a Brazilian judge decided to suspend the process until a labour court rules on a request by a union representing Amazonas Energia workers.

The union said that studies regarding the impact of the privatization on the company’s employees should have been made before the auction.

Eletrobras CEO Wilson Ferreira Jr said after the auction at Sao Paulo’s B3 exchange that the company will appeal the ruling.

 

Source: Reuters

Photo (for illustrative purposes): CSF – Comissão Senado do Futuro (cropped) / Senado Federal/ Flickr/ CC BY 2.0

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