Eletrobras shareholders elect new board in key post-privatization move

Brazilian power company Eletrobras (L3XA) on Friday elected its new board of directors, an 11-strong group that will set the firm's post-privatization strategy as markets expect it to become more flexible without the government's control.

Among those elected, according to a securities filing, were former Petrobras (PJXA) chief executive Ivan Monteiro, ex-Mining and Energy Ministry official Marisete Pereira, Petrobras board member Marcelo Gasparino and former Equatorial Energia (EQTL3F) CEO Carlos Piani.

Their terms will last until 2025.

The new directors were part of a single group of appointees presented by shareholders, including asset manager 3G Radar, Banco Classico, Maliko Investments, Navi Capital, SPX, Vinci and XP.

The move marks a new beginning for Latin America's largest utility after the government cut its stake in the company to 45% from 72% of the voting capital through a 33.68 billion-real ($6.51 billion) privatization share offering.

The process also set a voting right ceiling of 10% on individual stakes.

The new board will be responsible for choosing a new chief executive and setting the company's strategy for the coming years.

"This is a key event for the company," analysts at Itau BBA said earlier this week.

"The company is no longer constrained by being a state-owned enterprise, and the management team will now have much more flexibility to implement the changes that could make it one of the best utilities in the world."

According to Eletrobras' filing, 3G Radar's Pedro Batista was elected at the meeting to represent preferred shareholders. Carlos Eduardo Pereira retained his position as the representative of employees.

Carlos Piani, the document added, must resign from his board seats at rivals Equatorial Energia and Vibra Energia (VBBR3) to take his new position.

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