The emergence of a new bill could prevent all privatization processes, notably that of the Caixa Loterías, from being carried out by the public administration in Brazil for 12 months, after the government lifts the state of emergency, which will be in place until the end of 2020.
Project 2715/20 was presented by Deputies Enio Verri, Perpétua Almeida, Fernanda Melchionna and Joenia Wapichana. According to the Agencia Cámara de Noticias, the Chamber of Deputies is analyzing the text.
“History shows us that crises are excellent for those who buy, and a terrible time for those who sell,” said the deputies. “After a crisis like this one, asset prices fall, create a hostile environment for offers, and a large liquidation among quality companies,” they added.
The text says that both new privatization and divestment processes, as well as ongoing processes, would be suspended for a year, including the sale of shares that result in the loss of shareholder control.
“Recently, Petrobras reopened the sale process of its stake in Petrobrás Gás S/A (Gaspetro), of which it owns 51%,” said the deputies. “In the financial sector, the government is promoting the sale of Caixa subsidiaries, specifically Caixa Loterías, Caixa Seguridade and Caixa Cartão.”
In addition, the deputies said that the continuation of these privatization processes would be “irresponsible” and would generate significant losses for the Union.
Last month, Caixa Econômica Federal wrote a new set of proposals called “Lotofácil Improvements”, which aim to boost sales to mitigate the losses experienced in March 2020.
Lotofácil’s revenues dropped 21.1% in March due to the pandemic. Under Caixa’s plan sales could grow 67.2% if approved by FEBRALOT and the Secretariat for the Evaluation of Public Policies, Planning, Energy and Lottery (SECAP).
