Business
Brazil's Sabesp announces acquisition of EMAE for $212 million
Brazil's Sabesp announces acquisition of EMAE for $212 million
About this update from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp
Brazilian water utility Sabesp BMFBOVESPA:SBSP3 said on Sunday it has agreed to acquire a 70.1% stake in Empresa Metropolitana de Agua e Energia (EMAE) across multiple share classes for 1.13 billion reais ($212 million). EMAE owns and operates a hydraulic and power generation system in the Sao Paulo region, the Baixada Santista coastal area and the Medio Tiete region, all in Sao Paulo state. By combining water security with energy generation potential, the acquisition strengthens synergies across Sabesp's businesses and establishes a more resilient platform to address climate challenges and rising demand for essential services, the company said a securities filing. The acquisition of a controlling interest will take place through two separate agreements.The first, signed with Vortx, representing bondholders of Phoenix Agua e Energia S.A., involves the purchase of 74.9% of EMAE's common shares.A second transaction, conditional on the first, will see Sabesp acquire 66.8% of EMAE's preferred shares held by power company Eletrobras BMFBOVESPA:ELET3.The transactions were negotiated separately and are subject to approval by regulatory and antitrust authorities, Sabesp said in the filing. ($1 = 5.3348 reais)