RIO DE JANEIRO, Dec 5 (Reuters) - The board of Brazilian power company Eletrobras (ELET6.SA) will propose to shareholders the incorporation of shares of its subsidiaries CHESF, CGT Eletrosul, Furnas and Eletronorte, the company said on Monday.

"From the perspective of Eletrobras shareholders, such an operation ... unlocks extremely relevant value levers associated with the management and organization of these subsidiaries, which will ultimately be reflected in the expected future appreciation and profitability of Eletrobras itself," the company said.

Eletrobras' board said the merger proposal will be presented at an extraordinary meeting scheduled for Jan. 5.

The proposal includes an exchange of 7.9948 Eletrobras common shares for each CHESF preferred share; 0.0082 of Eletrobras common shares for each common or preferred share of Furnas; 0.00037 Eletrobras common shares for each CGT Eletrosul share; and 2.8155 Eletrobras common shares for each Eletronorte share.

Eletrobras' board will also propose the redemption of all its class A preferred shares, known as PNA, at 48.4502 reais per share, without reducing the share capital.

Eletrobras' PNA shares represent 0.006384% of Eletrobras' capital stock, the company said.

"The company's management clarifies that the decision to redeem the PNA shares was based on the authorization provided for in the bylaws and aims at rationalizing and simplifying its shareholder base, as well as reducing compliance costs," the company said.

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