06/28/2024 – 18:41
The government of the State of São Paulo announced this Friday, the 28th, that Equatorial Energia was the only finalist in the bidding process for a strategic investor within the scope of the privatization of Sabesp.
+ Sabesp has a net profit of R$823.3 million in the 1st quarter, an increase of 10.2%
The announcement was widely expected, as news was already circulating that Equatorial was the only one to formalize a proposal for the shares of the São Paulo sanitation company.
The management of Tarcísio de Freitas (Republicanos) intends to reduce its stake in the company from the current 50.3% to around 18%, while the reference shareholder will own a 15% stake, which should be maintained until the end of 2029 .
Privatization
The government of the State of São Paulo can raise up to R$16.5 billion with the public offering of shares of Sabesp. Sabesp published the prospectus for the public offering of shares last week. With this, the period for selling the company’s shares to the market begins, the final stage of the company’s privatization process. The government expects to complete the operation on July 22.
For now, the value of R$16.5 billion is just an indication of how much the State can raise from the deal, since the price per share will only be defined on July 18.
What will the share offering be like?
The transaction will have a base offering of 191.7 million shares and a supplementary lot of 28.8 million shares. There is no primary offering, which means that only shares that currently belong to the Government of São Paulo are being offered.
Between the 24th and today, professional investors presented their proposals. From July 1st until July 15th, the sale of approximately 17% of Sabesp shares will be open. During this period, investors able to operate in the stock market, including individuals, will be able to submit purchase requests through brokers.
The public offering of shares is being conducted by the coordinating banks: BTG Pactual, Bank of America, Citi, UBS and Itaú BBA.
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