Equatorial has become the sole finalist in the privatization process of Copasa, a state-controlled water and sanitation utility, reports Valor International. Equatorial submitted a bid of R$49.03 per share, which exceeded the minimum price of R$47.23 established for the transaction. The competing consortium formed by Aegea, Itaúsa, GIC and Equipav withdrew from the process, a development that caught many market observers off guard.
Equatorial expressed interest in acquiring all shares in the priority tranche, representing 30% of Copasa's total capital, as well as the maximum 48 million shares set aside for institutional investors, equivalent to an additional 12.6% stake. The total investment sought by the company amounts to R$7.95 billion (approximately $1.5 billion).
Itaúsa confirmed in a statement that it and the other members of the consortium chose not to submit a revised proposal following the disclosure of Copasa's minimum share price.
The selection of Equatorial and the completion of the share acquisition remain contingent on the conditions set out for the offering
The selection of Equatorial and the completion of the share acquisition remain contingent on the conditions set out for the offering, including the outcome of the bookbuilding process. Equatorial noted in a material fact notice that there is no guarantee the investment will be concluded.
According to Copasa's published timetable, the reservation period for retail investors began on June 5, continuing what has been structured as a standard follow-on share offering for a company already listed on the stock exchange.
Both Equatorial and the Aegea-led consortium had submitted initial proposals on May 25. After the process was reopened, both parties were permitted to submit revised bids. According to sources familiar with the matter, neither group's initial offer met the minimum price, which had not been disclosed in the original prospectus.
The renewed offering followed an unexpected suspension of the process on May 27, when Copasa announced it was halting the transaction and revising its terms through a new prospectus. The company cited unspecified subsequent developments as the reason, a move that generated uncertainty among market participants.
