Brazilian water and sanitation company Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) has agreed to acquire an investment fund that holds shares in Empresa Metropolitana de Águas e Energia (EMAE), increasing its stake in the energy company.
Sabesp said it will purchase 100 percent of the Oceania investment fund, which owns 3,407,000 ordinary shares of EMAE. The shares represent about 23.17 percent of EMAE’s voting capital and 9.22 percent of its total capital.
The transaction is valued at R$171.6 million (around US$32 million) and will be paid in cash. Once completed, the deal will raise Sabesp’s exposure to EMAE following earlier steps that gave the sanitation utility control of the company.
EMAE is a São Paulo-based power generation firm that operates hydroelectric assets and manages water resources in the state. Sabesp said the acquisition is aligned with its strategy related to water management and energy assets connected to its operations.
The purchase will be completed after the transfer of the fund’s ownership and the corresponding EMAE shares. Sabesp stated that the price reflects the valuation parameters used in previous transactions involving EMAE shares.
Sabesp did not disclose a timeline for closing the deal beyond stating that it will occur after the contractual conditions are met.
