FGTS at Eletrobras: worker will have a reserve of BRL 5,000

Eletrobras, the largest electric company in Latin America, will begin, next Friday (3), the process for the sale of its shares and workers will be able to use the money from the FGTS (Fundo de Garantia do Tempo de Serviço) to invest in State-owned papers from the 8th.

The offer of shares will be open to investors who already hold common or preferred shares of the company, employees and retirees of the state-owned company, workers who have funds in the FGTS and other investors.

The worker will have reserved a minimum amount of R$ 5,000 to use his FGTS, according to the statement released by Eletrobras this Friday (27). The limit is BRL 50,000 and you can use up to 50% of the balance in the fund.

In the offer by banks and brokers of FMPs (Mutual Privatization Funds), the minimum amount of contribution may start from R$ 200 and institutions will be free to offer lower amounts. That is, it will be allowed to invest less than the R$ 5,000 reserved from the FGTS.

The offer of Eletrobras shares, launched by the company this Friday (27), should move around R$ 35 billion, according to a preliminary prospectus delivered to the CVM (Securities Commission). The primary offering will be for 627.6 million shares. The total considers an initial lot of BRL 30.69 billion, plus a supplementary lot of 104.6 million shares.

The value of each share will only be known on June 9, when the buy and sell adhesion period ends and there is pricing – the value of each share will be determined based on the interest of investors. The sale calendar will open next Friday (June 3) and close on Wednesday (8).

Eletrobras’ common shares closed down 1.23% this Friday on the Stock Exchange, trading at R$ 42.68, but with a rise of about 30% in the year.

Worker will be able to indicate brokerage through the Caixa app

According to Caixa Econômica Federal manual, the worker who chooses to use FGTS money must choose an administrator to apply the resource. In this case, the company will intermediate the operation and will need to have access to the registration and financial information of the account linked to the fund, related to amounts available for investment.

Through the FGTS application, the worker can consult the balance available for application, authorize the administrator to consult the balance and request the reserve/debit of part of the balance of his FGTS account for investment in a Mutual Privatization Fund.

The offer for retail will be limited to a total value of R$ 6 billion in these cases. Investors will be able to make use of amounts allocated in the FGTS, as well as migrate the resources they hold in privatization mutual funds intended for the purchase of shares in Petrobras and Vale, in the early 2000s. At the time, it was allowed to use the money from the fund to buy the shares.

Next steps for privatization

With the official launch of the offer to the market, the next steps are the “roadshow” to present the opportunity to investors and the collection of investment intentions, when the market demand for the operation and the final value per share of the offer are effectively determined.

One of the purposes of capitalization is to enable the company to increase its level of investments and become more competitive in the market.

The funds that must be raised with Eletrobras’ primary offer will go to the company’s cash, to help it pay a grant grant to the Federal Government for the change in the contract of its hydroelectric plants, which will be able to sell energy on the free market.

Based on the Eletrobras communiqué released this Friday and with information from Caixa Econômica Federal and the government, the Sheet prepared the answers to the main questions about the purchase and sale of state-owned shares.

Clear your doubts about the sale of shares

Who can buy Eletrobras shares?

• The offer will be open to investors who already hold common or preferred shares of the company, employees and retirees of the state-owned company with a deadline of April 30, workers who have funds in the FGTS (Fundo de Garantia do Tempo de Serviço) and other investors.
• Those who already have common and preferred shares of the company will have priority in the purchase and will be able to request an advance reservation by filling out a specific form for the acquisition of shares
• In the case of employees and retirees, there will be 69,747,685 shares allocated to them on a priority basis, which corresponds to 10% of the total number of shares in the public offering, provided there is demand; the rule is valid for anyone who was an employee or former employee on April 30, 2022 and is in the condition of participant or assisted person in the Eletrobras Companies’ supplementary pension plans or who were migrated
• For workers who are going to buy using the FGTS, it is possible to use up to 50% of the value of the Guarantee Fund in the purchase
• Retail and institutional investors will also be entitled

When will I be able to buy the shares?

• The booking period will start on June 3rd and run until June 8th. On the 9th, the operation will be priced, that is, the price per share will be defined

Check the calendar:

May 27, 2022

• Protocol of application for registration of the offer with the CVM
• Beginning of presentations to potential investors (roadshow)
• Beginning of the bookbuilding procedure (stage in which the offer coordinators collect all purchase intentions received from investors)

03.jun.2022

• Start of the booking period
• Start of the membership period

08.jun.2022

• Date of FMP-FGTS reservation requests
• End of booking period
• Closing of presentations to potential investors

09.jun.2022

• Closing of the bookbuilding procedure
• Pricing per share

13.jun.2022

• Start of trading of shares on B3

Will I need to hire a broker to reserve the shares?

• To be able to participate in the offer, the investor must open an account with a bank or brokerage company accredited with the CVM, and indicate the number of shares he intends to acquire.
• The number of shares to which the investor will be entitled will be announced on June 9, when the bookbuilding procedure is expected to end
• According to Caixa’s manual, through the FGTS application, the worker can consult the amount of the balance available for investment in the FMP, as well as authorize the financial institution to consult the balance and request a reserve/debit of part of the balance of his account in the Fund. of Warranty for application

Can I buy and sell the shares right away?

• If the purchase is made using FGTS funds, the investor will have to hold the shares for a period of at least 12 months
• After this period, the sale will be released, but, in case of negotiation of the securities, the balance obtained with the sale will be in the Guarantee Fund account and can only be withdrawn in accordance with the legal rules, that is, dismissal without just cause, purchase home ownership and retirement, among others (see here the 16 situations that allow FGTS withdrawal)

How will the privatization of Eletrobras be?

• It will be a capitalization of the state-owned company, with the offering of shares
• This offer seeks to dilute the Union’s share, which needs to fall from 72% to 45%, raise funds to pay the grant to the State and transform the company into a corporation
• No shareholder may have more than 10% of the total shares
• The company will no longer control Eletronuclear, owner of Angra 1 and Angra 2, and Itaipu, which will be transferred to a new state-owned company, ENBPar
• The change will reduce the new company’s market share; shares will also be issued to reduce the government’s participation, which will be entitled to a golden share, which is a special action with veto rights

with Reuters