Sabesp is considering incorporating all the shares of Empresa Metropolitana de Águas e Energia (Emae) that it does not yet own, according to a statement to the Securities and Exchange Commission (CVM).
With the merger, which still requires approval from the companies and their shareholders, Emae will be converted into a wholly owned subsidiary of Sabesp. Emae shareholders will receive Sabesp shares, with an exchange ratio yet to be defined by a committee.
“The intended Merger of shares aims to simplify and optimize the companies’ corporate structure, consolidating their shareholder bases in a single company and reducing operating costs”, according to the statement.
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Sabesp purchased a controlling stake in Emae for R$1.1 billion in October last year, taking 70% of the company’s total capital. In January of this year, the Administrative Council for Economic Defense (Cade) approved the acquisition. Emae controls the hydraulic systems in Greater São Paulo, Médio Tietê and Baixada Santista.
Emae was privatized in 2024, purchased at an auction for R$1 billion per vehicle controlled by businessman Nelson Tanure. To finance part of the acquisition, debentures were issued and Tanure gave Emae shares as collateral. The first installment of interest on these debentures was not paid and led to the declaration of early maturity of the debt and the execution of the guarantees, culminating in the sale of Emae shares.
