Bank still holds around 8% of the shares and is studying a block operation instead of a public offering
15/05/2022
The Brazilian Development Bank (BNDES) is evaluating the sale of most of its remaining position in Eletrobras and has already begun talks with investment banks on the subject. The lock-up imposed on the capitalization last June ends on December 7th, when the institution’s shares become free for trading.
BNDES is considering selling R$7 billion, corresponding to the common shares held directly and via BNDESPar, which are the most liquid shares of Eletrobras. The preferred way is a block trade, not a public offering, sources said.
The bank has already succeeded in an operation of this size up and running quickly. At the end of 2020, it sold R$8 billion in Vale shares in a block trade.
This will require a firm guarantee from the banks, which also explains why the initial approach was made with two large foreign banks and two large Brazilian banks. It needs to have a balance to provide support and quick connections to large investors.
It is a unique window of opportunity for the current management of the Brazilian Development Bank to complete its ambitious portfolio divestment plan before the change of government. “The BNDES wants to sell, but has not yet taken the concrete step,” said a source. “So far it has only been sounding,” added another executive.
The offer will also depend on market conditions and investor appetite. Sought, BNDES did not comment.
BNDESPar has 71.96 million common shares and 18.69 million preferred shares. BNDES holds 74.55 million common shares and another 18.26 million preferential shares. The positions add up to about 8% of the electric company’s capital. If it sells all the common shares, the bank will still hold a little more than 1% in preferred shares.
In the privatization public offering, in the middle of the year, the lock-up of 180 days from the start date (June 10) was imposed on selling shareholders and on those with positions greater than 5%. The BNDES fits both restrictions.
By Maria Luíza Filgueiras, Francisco Góes — São Paulo, Rio de Janeiro
Source: Valor International