Aegea has shockingly backed out of the bid for a 15% stake in Sabesp, leaving Equatorial Energia as the sole contender by the June 26 deadline. Sabesp, the premier water utility in Latin America, faced obstacles with Aegea’s withdrawal due to the high minimum price and technical requirements. The Privatization Program’s Board of Directors set undisclosed minimum prices, hindering all bids.
Equatorial Energia now stands as the only bidder for the stake in Sabesp, with prospective investors having until June 27 to resubmit their bids. The sale divides into a 15% stake for a reference investor and 18% for retail investors, aiming to raise R$7.5 billion ($1.35 billion) through a secondary share sale by the São Paulo state government.
This development highlights the complexities of Brazilian privatization, balancing investor attraction with regulatory protections. The outcome will significantly shape Sabesp’s operational future and the sanitation sector in Brazil.