06/22/2024 – 15:52
The government of the State of São Paulo presented yesterday the prospectus for the Sabesp privatization offer and, according to lawyers interviewed by the Broadcastthe offer came as expected and should attract investors, as it is an important asset with great growth possibilities.
For Paulo Dantas, partner at Castro Barros Advogados, it is more or less what the market was expecting. “In addition to being talking about an area of the São Paulo Metropolitan region that is densely populated, it has an interesting value both from an environmental and an economic point of view. The offer follows the government’s script. The government has taken great care of this to avoid any question,” he said.
Alberto Sanz, partner at Sogayar and Alcântara Advogados, is even more optimistic about the privatization of Sabesp. “It came in line with what was being presented, but with good news, with the ‘right to match’, which is the opportunity for those who present the book with the lowest value and best conditions, to be able to make a new offer and take the auction . The process is very well thought out, very well structured. The government has given credibility and has reaffirmed from the beginning, in the campaign, that this privatization would occur, so I am very excited about the opportunity,” he says.
The expectation is that the offer will generate around R$16 billion, according to the assumptions published in the transaction presentation document, released last night. The government expects to complete the operation on July 22.
Regarding the ‘right to match’ mechanism, Percy Soares Neto, consultant and former executive director of the National Association and Union of Private Concessionaires of Public Water and Sewage Services (Abcon), highlights that the mechanism was presented at the last minute, but says that it is still too early to assess how companies will interpret it. “Who benefits from this? Who of the competitors sees the mechanism in place with the best eyes?” asks Soares.
Regarding the device, Dantas says that “they are trying to avoid adventurers. It’s healthy and may put off some adventurers. It is still not very clear when this assessment will be made and when this mechanism will be used to protect the asset. At first I think it’s interesting,” he explains.
For Sanz, however, the ‘right to match’ mechanism was too generic. “We still need to understand, but I think clear rules will be given on how the game will be. Only the idea was given, but obviously, the procedure has to be very clear and well defined, that is a fact. I understand it as an intelligent structuring of a way to be able to raise more money for the government and at the same time, the investing company has the possibility of being able to change the game. I find this very interesting. Competition generates quality and quality generates results,” he says.
Dantas believes that the offer could attract even more interested parties than the two who have already been identified as the right names in the offer. “Although so far there are only two companies officially interested in Sabesp’s offer, Aegea and Equatorial, there is still hope for new companies to enter in the form of a reference partner. We know that there are some large interested groups. There has been a lot of talk about Aegea and Equatorial, but it is possible that others will emerge, because it is a very interesting asset”, said Dantas.
Sanz recalls that in addition to the two companies mentioned, there are also signs of interest on the part of businessman Nelson Tanure in entering the operation, but this has not yet been made official. “I hope more companies enter the competition. An asset of this scale, of this structure, should have more interested parties. There’s still time. It would be good for everyone,” he says.
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