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CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

 

 

Centrais Elétricas Brasileiras S/A ("Company") informs its shareholders and the market in general that received on July 1, 2016, the Official Letter of the Comissão de Valores Mobiliários (“CVM”) No. 313/2016-CVM/SEP/GEA-1, requesting clarification regarding news published by Valor Econômico newspaper under the title: "Eletrobras", as transcribed by the end of this notice.

 

In response to the Official Letter in question, the Company clarifies the following:

 

1. Information concerning the renewal of concessions of the  Distribution Companies subsidiaries of Eletrobras, needs of capital increase to these concessioanires meet the goals of the National Electric Energy Agency - ANEEL, as well as on the sale of these distribution companies, were subject of several market announcements, disclosed by the Company, especially those released on December 29, 2015, January 13, 2016, January 22, 2016, June 13, 2016 and June 29, 2016, and also in detailed in the Management Proposal of the 165th Extraordinary General Meeting of the Company restated to the market on June 29, 2016.

 

2. Similarly, the clarifications regarding the sale of other assets of the Company have also been subject of other market announcement, such as that of May 18, 2016.

 

3. In view of the all mentioned above, there is no new fact to be disclosed to the market.

 

 

 

 

Rio de Janeiro, July 04, 2016.

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

 

 

 

 

 

 

 

Free Translation Officlal Letter nº 313/2016-CVM/SEP/GEA-1

 

 

“ Subject: Clarification request about News

 

Mr. Director,

 

 

1. In a reference to the news published today in the newspaper “Valor Econômico”, under the heading "Eletrobras" which contained the following statements:

"Eletrobras may decide to return the grant of its distributors in which has a 100% shareholdings participations, if the Shareholders of the company do not approve, at a meeting scheduled for July 22, a capital contribution of at least R$ 8 billion in these companies, with federal funds. According to a source with knowledge of the matter, if the Federal Government, majority shareholder, does not approve the contribution at the meeting, the board shall set a new meeting to discuss the matter.

 

 

"[If the Federal Government does not approve the contribution], the board will convene another meeting in which the matter will be discussed," the source said to the newspaper “Valor Econômico”.

 

This week, the Board of Directors increased from R$ 7 billion to R$ 8 billion, the minimum amount required of contribution by the Federal Government in the capital of six distribution companies, operating in Amazonas, Acre, Rondônia, Roraima, Alagoas and Piaui. The amendment was included in the proposal which will be brought to election by the shareholders on July 22. The board's decision comes a week after the government has published provisional measure limiting the transfer of public resources to help distributors at R$ 3.5 billion this year.

 

With the decision, the Board of State Utility Company, whose recent stance has drawn the attention of the market for independence related to the Federal Government maintains its position of capital contribution in distribution companies. The expectation is that governance and autonomy of view of the Board be expanded with the arrival of Wilson Ferreira Jr. for president of the State Utility Company.

 

 

 

Free Translation Officlal Letter nº 313/2016-CVM/SEP/GEA-1

 

“Valor Econômico” found out that, in addition to the plan of selling the distributors up to the end of 2017, Eletrobras plans to sell the stake in a large hydroelectric plant as soon as possible. "There is chance of selling stake in one of those big there [hydroelectric plant], for not having to suffer capitalization in parent company" the source said. "Eletrobras has a big lack of funds", he added." (Emphasis added)

 

 

2.      Relating to this, we determine that you, Mr Director, clarify whether the news is true, and, if confirmed its veracity, shall explain the reasons that understood not to be relevant fact, as well comment about other information deemed important, especially as the results of any internal and contracted investigations by the issuer on the subject.

 

 

3.      This answer should take place through the Empresa.NET System category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, subject: Disclosed in the news media, which should include a transcript of this Official Letter.

 

 

4.      We warn that the order of the Superintendence of Corporate Relations, in exercise of its legal powers and on the basis of section II of Article 9 of Law 6,385/76 and CVM Instruction No. 452/07, it will be the determined the application of fine in the amount of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions for non-compliance with the requirement contained in this notice within 1 (one) business day from the date of knowledge of content of this expedient, sent exclusively by e-mail, despite the provisions of the sole paragraph of art. 6 of CVM Instruction 358/02. “

 

 

 

 

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS
By:	/S/ Armando Casado de Araujo
	Armando Casado de Araujo Chief Financial and Investor Relation Officer