Brazil on Monday floated a proposal to cede control of the country’s biggest power utility, Eletrobras, in the boldest privatization yet by a government struggling to close a record budget deficit, sending Eletrobras’ shares soaring in after-market trading.
The Mining and Energy Ministry gave Centrais Elétricas Brasileiras SA, the holding company known as Eletrobras, notice of the plan and said publicly that it would bring the proposal to President Michel Temer’s special council on privatizations.
While both the privatization model and terms are yet to be decided, the government will keep a right to veto some strategic decisions, the ministry said in a statement.
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