After receiving lower-than-expected offers from investors interested in becoming the reference shareholders of Copasa , the government of Minas Gerais decided to reveal its wishes in the privatization process of the sanitation company, disclosing the minimum amount it wants to receive.
The company released a new version of the prospectus for the operation on the morning of Thursday, May 28, revealing that the minimum value established by the state of Minas Gerais is R$ 47.23 per share.
The value is below the R$ 50.75 at which Copasa's shares closed the previous day's trading session, Wednesday the 27th. Year-to-date, the shares have accumulated a 16.7% increase, bringing the company's market value to R$ 19.3 billion.
The final offer price, however, will still be determined during the bookbuilding process. The operation's timeline stipulates that those interested in becoming reference shareholders must express their interest by June 3rd.
The share price is scheduled to be set on June 11, with trading on the B3 stock exchange beginning on the 15th. If the price falls below the established minimum, the offering will be canceled.
The minimum value expected by the government of Minas Gerais was revealed after the proposals submitted by those interested in becoming the reference shareholders fell below what the state government desired .
The discrepancy between the expected value and the amount offered by the market led to the suspension of the stage of choosing the reference shareholder, considered central to the structuring of the operation, according to sources heard by NeoFeed .
Among those interested were Equatorial Energia and a group formed by Aegea Saneamento and its shareholders, both with a history in the sanitation sector. However, neither of them agreed to pay the minimum amount set by the State.
The process foresees the sale of 171,113,881 Copasa shares in the base offering, with the possibility of an additional lot of 19,035,730 shares, lower than initially announced, due to judicial injunctions.
Considering the share price of R$ 52.77 on May 19th, a reference point in the preliminary prospectus, the offering could generate a net amount of R$ 10 billion if all shares are sold.
The selected reference investor will hold a 30% stake in Copasa's capital, subject to a lock-up agreement and unable to sell the shares for four years. After this period, they will have to maintain 50% of the shares until 2033, or until the universalization goals are met.
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 .
