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Brazil's Eletrobras now known as Axia Energia

Brazil's Eletrobras now known as Axia Energia

The Brazilian power company Eletrobras has announced that it will change its name from Eletrobras to Axia Energia. This is a move it says won't affect any of the firm's contractual, business or regulatory obligations.

Eletrobras said in a filing that the ticker for its ordinary shares listed on the Sao Paulo Stock Exchange "ELET3", will change to "AXIA3", starting November 10. The new identity will gradually be incorporated into its communications and assets.

The name change removes all references to Brazil as a result of the state owning the company. Eletrobras completed its privatization in mid-2022. However, the Brazilian government still owns almost 30% of total shares.

Eletrobras has taken steps to distance itself from state-related issues in recent years. The firm, for example, last week

Its stake in the state nuclear energy company Eletronuclear.

It is responsible for 37% of all transmission lines and 17% of total power generation capacity in the country. The company has 81 installed plants with 47 hydroelectric, 32 wind, and one solar.

In exchange for increased representation on the board of the company, the Brazilian government has pledged to stop questioning its 10% voting restriction in the firm, which is imposed by any shareholder or group.

The former president Jair Bolsonaro privatized the company during the term of Luiz Inacio Lula Da Silva. Reporting by Isabel Teles and Alberto Alerigi Jr.; Writing by Fernando Cardoso, Editing by Brendan O'Boyle & Diane Craft

(source: Reuters)