Worker can now consult FGTS to invest in Eletrobras

Caixa Econômica Federal released, this Saturday (28), consultation with the FGTS (Fundo de Garantia do Tempo de Serviço) for workers who intend to use the amounts to reserve Eletrobras shares in the company’s privatization process.

The reservation will start on Friday (3) and will run until the 8th, the bank said. The date is valid for all investors who are interested in the shares of the largest electric company in Latin America.

According to the rules, the worker will have reserved at least R$ 5,000 to use his FGTS, according to a statement released by Eletrobras on 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 balance inquiry and investment simulation are done in the FGTS application. It will also be possible, at Caixa branches, to consult the balance available for investment in FMP (Mutual Privatization Fund), to simulate the investment and to authorize an institution managing the FMP-FGTS to reserve the amounts for investment in FMP.

Here’s how to query:

• Access or download the FGTS app on your cell phone (for those who have already downloaded it, it is necessary to update)
• Click on “Sign in to the app”
• Enter your CPF and go to “Continue”; if necessary, click on the requested images and on “Verify”
• Enter the password and click “Login”
• On the home screen, below, on the right, there are four squares that read “More”; click on them
• On the next screen, choose “Application Simulator in FMP – FGTS”
• The next page will provide guidance on the simulation; scroll down and click “Go to simulator”
• Select “FMP Eletrobras” and then go to “Continue”
• The amount that can be invested will then appear.

The application of resources can be carried out by the worker in an administrator of his choice, among those authorized to operate with the FMP-FGTS. But first, the citizen must access the FGTS app and authorize the institution to consult the available balance of their linked account and to reserve the amounts.

On the 3rd, 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.

Privatization of Eletrobras

The Eletrobras share offering was launched by the company on Friday (27) and is expected to move around R$ 35 billion, according to a preliminary prospectus delivered to the CVM (Brazilian Securities and Exchange Commission), with a primary offering of 627.6 million shares and plus an additional 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 privatization of Eletrobras 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.

ANSWER YOUR DOUBTS ABOUT THE SALE OF SHARES

WHO MAY 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 CAN I 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

• 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 BROKERAGE FIRM 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

CAN I BUY AND SELL SOON AFTER THE SHARES?

• 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 ELETROBRAS’ PRIVATIZATION 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