In This Article:
SAO PAULO, Oct 16 (Reuters) - Brazilian state-run power firm Centrais Eletricas Brasileiras SA estimated that it could raise up to 5.1 billion reais ($1.23 billion) via the potential issue of 9.99 billion reais worth of shares, according to a company presentation released Wednesday night.
If the company, commonly known as Eletrobras, raises the full 9.99 billion reais, it estimates a minimum of 4.05 billion reais of the new shares would be associated with the so-called APACs programme. That is a mechanism which allows debt accumulated through loans by the federal government to convert into equity capital in Eletrobras, reducing the firm's debt load.
That scenario assumes the participation of 100% of the company's minority shareholders.
If 60% of minority shareholders participate, according to the presentation, the company would raise 1.9 billion reais.
On Monday, Eletrobras said it had approved a general shareholders meeting to decide upon the capital increase.
($1 = 4.15 reais) (Reporting by Roberto Samora; Writing by Gram Slattery; Editing by Christian Schmollinger)