Brazil's lower house approves bill to privatize Eletrobras

SAO PAULO, May 20 (Reuters) - Brazil's lower house approved late on Wednesday a bill to privatize Brazilian state power utility Eletrobras, a long-awaited divestment.

Under the terms of the bill, Eletrobras will sell new shares to investors, diluting the stake of the government, which will lose its controlling interest in the company.

The government expects to raise roughly 25 billion reais ($4.71 billion) from the divestment.

On Wednesday, shares in Eletrobras jumped almost 4% on expectations the lower house would approve the bill.

To be implemented, the bill also needs the approval of the Senate. ($1 = 5.3095 reais) (Reporting by Carolina Mandl; Editing by Alex Richardson)