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MARKET ANNOUNCEMENT |
CENTRAIS ELETRICAS BRASILEIRAS S/A
CNPJ: 00.001.180/0001-26
PUBLIC COMPANY
Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) hereby informs its shareholders and the market in general that received from B3 S.A. – Brasil, Bolsa, Balcão, on this date, the Official Letter No. 209/2018-SAE, as transcribed bellow, requesting clarification regarding the news published in the newspaper Valor Econômico, on February 16, 2018, under the heading: “Eletropaulo and Eletrobras close to an agreement”.
Free translation of the Official Letter No. 209/2018-SAE
“Centrais Elétricas Brasileiras S.A. - Eletrobras
At. Mr. Armando Casado de Araújo
CFO and Investor Relations Officer
Subject: Request for clarification on news published in the press
Dear Officers,
In the news published by the newspaper Valor Econômico, on 02/16/2018, under the heading “Eletropaulo and Eletrobras close to an agreement”, is stated, among other infformations, that:
1. Eletropaulo and Eletrobras are about to announce an agreement to terminate a legal dispute that has been going on for nearly 30 years;
2. If the board of directors of both companies give the necessary guarantees, the São Paulo Distribution Company (Eletropaulo) must accept to pay about R$ 1.6 billion to the state-owed company, an amount close to that calculated by the experts contracted in the process;
3. To pay the amount owed, the company intends to access the capital market and the company intends to raise R$ 1.5 billion from shares sale, of which R$ 1 billion in a primary offer and R$ 500 million in an offer in which AES must leave the company. This offer must happen until March.
We request clarification on the items indicated, until 02/19/2018, with your confirmation or not, as well as other information considered important.”
MARKET ANNOUNCEMENT |
Thus, in compliance with the Official Letter in reference, the Company hereby informs the following:
1. The Company issued a Market Announcement on February 2, 2018, which clarified that Eletrobras and Eletropaulo Metropolitana Eletricidade de São Paulo S.A. ("Eletropaulo") are still discussing the terms of an eventual agreement in the scope of the judicial process No. 001002119.1989.8.19.0001;
2. The Market Announcement was duly filed with the Brazilian Securities and Exchange Commission - CVM, the U.S. Securities and Exchange Commission - SEC, the New York Stock Exchange - NYSE and the Madri Stock Exchange - Latibex, as well as being available on the Eletrobras website (www.eletrobras.com/ir);
3. Eletrobras’ Board of Directors ("BoD") approved, on February 5, non-binding general conditions as part of the agreement process that still has stages of mediation and judicial approval to be defined between Eletrobras and Eletropaulo in order to terminate the judicial process No. 001002119.1989.8.19.0001, in progress in the 5th Civil Court of the TJ-RJ.
4. Regarding the item 3 of said letter, it is not up to Eletrobras to issue an opinion.
5. In light of the foregoing, we understand that the information officially available, up to this moment, has been properly disclosed through channels established by applicable Brazilian and foreign legislation
Rio de Janeiro, February 16, 2018.
Armando Casado de Araujo
CFO and Investor Relations Officer
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
By: |
/S/ Armando Casado de Araujo
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Armando Casado de Araujo
Chief Financial and Investor Relation Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.