Eletrobras has enough shareholders votes to approve deal with Brazil, filing shows

Brazilian power company Eletrobras ELET3 has enough votes to approve a proposed agreement with the country's government to end a legal dispute over government voting power in the company, a filing with the votes cast remotely showed on Monday.

Approval is not final until a shareholders meeting scheduled for Tuesday, and voters cast remotely can still be changed before then.

The agreement, which Eletrobras reached with the government last month, allows the government to nominate three of Eletrobras' 10 board members, up from zero currently.

Shareholders are set to elect Eletrobras' new board on Tuesday.

The deal with the government in turn frees Eletrobras from previously planned investments in the controversial Angra 3 nuclear plant.

The government of President Luiz Inacio Lula da Silva pushed in 2023 to regain influence in Eletrobras in order to better reflect its 46% stake of the firm's common shares. This lead to a mediation process that lasted for over a year.

Eletrobras was privatized in 2022, during the term of Lula's predecessor Jair Bolsonaro, and under its bylaws no more than 10% of a stake can be used by a shareholder to exercise voting power over company decisions.