HALISTER1: Brazil’s Eletrobras Privatization Is Market Friendly: Safra

Brazil’s Eletrobras Privatization Is Market Friendly: Safra

(Bloomberg) -- Move represents a major catalyst for the stock, Safra expects positive market reaction, says bank in report signed by Kaique Vasconcellos.
  • Eletrobras has an inefficient cost structure and privatization may create great value for shareholders
  • Looking only at cost structure, a 20% cut means a potential NPV of 13b reais
  • Although it is hard to price-in 100% probability of this scenario, Safra reinforces outperform rating due to potential privatization of generation assets or the entire company, divestment plan and costs savings program
To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Priscilla Murphy

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
ELET6 BZ (Centrais Eletricas Brasileiras SA)

People
Kaique Vasconcellos (Banco Safra SA)

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