Brazil’s Cia de Saneamento Básico do Estado de São Paulo (Sabesp), the largest public utility company in Latin America, has agreed to purchase a majority stake in Empresa Metropolitana de Águas e Energia (EMAE) for 1.13 billion reais (about US$ 212 million), in a move that strengthens its presence in the water and energy markets.
Sabesp will acquire 74.9% of EMAE’s common shares and 66.8% of its preferred shares, at 59.33 and 32.07 reais per share, respectively. The agreements cover the purchase of shares held by Phoenix Água e Energia SA and Centrais Elétricas Brasileiras SA.
Once the transaction is completed, Sabesp will control around 70% of EMAE’s total capital, becoming the majority shareholder of this hydroelectric generation company. The deal still requires approval from regulatory and antitrust authorities.
“By combining water security with energy generation potential, the acquisition enhances synergies between the Company’s business segments and strengthens its foundation to face the challenges of climate change and the growing demand for essential services,” Sabesp said in a corporate presentation.
The purchase is part of Sabesp’s expansion strategy in the state of São Paulo following its privatization last year, during which its shares have gained more than 50% in value.
