Eletrobras Preferred Shares Rise 4.5% on Possible Integration of Furnas

By Jeffrey T. Lewis

SÃO PAULO--Centrais Eletricas Brasileiras's preferred shares rose 4.5% after the Brazilian electric company known as Eletrobras said it is studying the possible integration of its Furnas unit.

The shares reached 39.43 reais ($8.11) and were down 13% from the end of last year through Tuesday's close. Brazil benchmark Ibovespa stocks index was up 1.5% Wednesday.

Eletrobras said Tuesday evening it is studying the possibility of integrating Furnas, a major subsidiary with operations in 15 Brazilian states and the country's Federal District, into the parent company.

Eletrobras is working to simplify its corporate structure to reduce costs and increase its use of renewable energy sources. The integration of Furnas, currently a separate company with 22 hydroelectric plans and five wind power parks, will help with both goals.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

August 23, 2023 13:25 ET (17:25 GMT)

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