The privatization of Copasa is expected to move forward after the company announced that Equatorial Energia has been designated as its reference shareholder, having committed to injecting up to R$ 7.9 billion.
In a relevant fact disclosed, the Minas Gerais state sanitation company reported that Equatorial submitted a proposal to pay R$ 49.03 per share, above the minimum established by the state government, of R$ 47.23.
The amount corresponds to R$ 5.6 billion for the 30% that the reference investor needs to acquire in the base offering. Considering that Equatorial has expressed a desire to participate in any additional allocation, equivalent to 12.6% of Copasa's share capital, the investment could reach R$ 7.9 billion.
Equatorial, which is part of Sabesp 's reference shareholder group, was the only competitor in this phase, after Aegea Saneamento and its shareholders chose not to submit a new proposal.
In a statement, Itaúsa , one of the participants in the bloc, informed that the decision is aligned "with discipline in capital allocation and with the continuous creation of sustainable value for shareholders, investees and society."
The privatization of Copasa stalled after the government of Minas Gerais received lower-than-expected proposals from those interested in becoming the company's main investors.
The discrepancy between the value expected by the State and the amount offered by the market led to the suspension of the stage of selecting the reference shareholder, considered central to the structuring of the operation.
The situation prompted the Minas Gerais state government to "come clean" and publicly disclose how much it expected to receive, stating that the offer would be canceled if the amount fell below R$ 47.23.
The final offer price, however, will be determined throughout the bookbuilding process. The operation's timeline anticipates that the share price will be set on June 11th, with trading on the B3 starting on the 15th.
Equatorial highlighted in a statement that its entry as a reference shareholder in Copasa will depend on the outcome of the bookbuilding process, "therefore, there is no certainty regarding the completion of the investment."
If confirmed as the reference shareholder of Copasa, Equatorial will have to comply with a lock-up agreement, preventing it from selling its shares for four years. After this period, the company will have to maintain 50% of the shares until 2033, or until it meets its universal service goals.
The government of Minas Gerais will cease to have a stake in Copasa if all shares are sold. In this scenario, the outstanding shares should represent 54.3% of the share capital.
The operation is being coordinated by BTG Pactual , Itaú BBA , Bank of America (BofA), Citi and UBS BB .
Shares of Equatorial closed yesterday's trading session up 1.89%, at R$ 39.81. Year-to-date, the shares have appreciated by 3.94%, raising the company's market value to R$ 50 billion.
Copasa's assets rose 13.34%, to R$ 60. Year-to-date, they have accumulated a gain of 38%, bringing the company's market value to R$ 22.8 billion.
