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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 on August 22, 2017, from Comissão de Valores Mobiliários - CVM, the official letter No. 291/2017/CVM/SEP/GEA-1, requesting clarifications regarding the news published by the G1 news portal, under the title "Ministry proposes privatization of Eletrobras ", as transcribed at the end of this market announcement.

 

In compliance with the aforementioned Official Letter, the Company clarifies the following:

 

1. According to the Relevant Facts published on August 21, and 22, 2017, the Ministry of Mines and Energy will propose to the Council of the Investment and Partnership Program of the Presidency, the privatization of Eletrobras. There is neither approval nor definition of the model of how privatization may occur.

 

2. The Company also highlighted in the aforementioned Relevant Facts that the implementation of the operation and the definition of the model depend on governmental authorizations, as well as the evaluation of the legal and regulatory authorizations that may be necessary.

 

3. In light of the foregoing, there is no material information that has not been adequately disclosed by the Company through Material Facts mentioned above.

 

 

 

 

 

 

Rio de Janeiro, August 22, 2017.

 

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

 

Free Translation of the Official Letter nº 291/2017/CVM/SEP/GEA-1

 

“ (...)Subject: Request for clarification on news.

 

Dear Officer,

 

1. In reference to the news published on 08.21.2017 in the G1 news portal under the title "Ministry proposes privatization of Eletrobras", which summarizes the following statements:

 

“[...]

According to GloboNews journalist Valdo Cruz, the Minister of Mines and Energy, Fernando Coelho Filho, said that the proposal is for the Federal Government participation in Eletrobras fall to 47% and that the expectation is to raise about R$ 20 billion with the operation .

According to the minister, a capital increase in the company will be made, in which the government will not participate. Consequently, the stake of government in the company will fall.

[...]

"The way out is to seek funds in the capital market by attracting new investors and new partners. The government will remain a shareholder, receiving dividends over time. The company will start to give profit and not loss, which will benefit states and municipalities with the increase in tax collection, "the document says.

The text also states that 'the Federal Government will maintain veto power in the Eletrobras administration, ensuring that strategic decisions in the sector are preserved, such as the sectoral costs of the CDE and the financing of projects to revitalize the Rio São Francisco [...]”.

2. In view of the foregoing, we request a statement from the company regarding the statements highlighted in the above news and how Eletrobrás's privatization process will be carried out.

3. It should be noted that CVM Instruction No. 358/2002, article 4, sole paragraph, provides for the obligation to inquire of the company's management and controlling shareholders, as well as all other persons with access to relevant acts or facts, whether they are aware of information that must be disclosed to the market in order to ascertain whether they know information that should be disclosed to the market.

 

 

 

 

4. The answer should be submitted through the Empresa.NET System category: Market Announcement, type: Clarifications Inquiries CVM/BOVESPA, subject: Disclosed in the news media, which should include a transcript of this Official Letter.

 

5. The Superintendence of Corporate Relations will be responsible for, in the use of its legal attributions and, based on Law No. 6,385/1976, article 9, item II, and CVM Instruction No. 452/2007, the determination of the application of a fine, in the amount of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions, for failure to comply with the requirements of this official letter, sending exclusively by email, until 08/23/2017, notwithstanding the provisions of the sole paragraph of art. 6 of CVM Instruction 358/02.

 

Sincerely,”

 

 

 

                                                                                                                                               

 

 

 

 

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