✓ verbatim from the press
The Equatorial Group completed on Tuesday (16) the acquisition of 30% of the Minas Gerais Sanitation Company (Copasa) for R$ 5.593 billion, in a ceremony at B3 in São Paulo. The operation — the second-largest sanitation privatization in the country via stock exchange, behind only Sabesp — was carried out through a public offering of common shares, without competitive bidding: Equatorial offered R$ 49.03 per share, above the minimum price of R$ 47.23, but was the only bidder after a consortium of Aegea investors withdrew. ✓
Press quotes (3)
"Ao todo, o Grupo Equatorial fez a aquisição de 114.075.920 ações da Copasa, movimentando um montante de R$ 5,593 bilhões. Cada ação foi negociada a R$ 49,03."
"A Equatorial ofereceu R$ 49,03 por ação da Copasa, acima do preço mínimo de R$ 47,23 estipulado para a oferta, e foi a única proponente nessa etapa, após a desistência de um consórcio investidores da Aegea."
"Sancionada e publicada no Minas Gerais desta terça (23), Lei 25.664 se originou de projeto do governador aprovado no Plenário da ALMG... autoriza o Governo de Minas a iniciar o processo de desestatização da Copasa... Quem adquirir a Copasa será obrigado a cumprir as metas de univ"
The transaction followed the secondary share offering model, subject to CVM Resolution 160/2022 for issuers with large market exposure (EGEM) and with international placement under Rule 144A and Regulation S of the U.S. SEC, according to Official Letter SECGERAL/GAB GOVERNADOR 7/2026 dated January 28. The Minas Gerais government, which held 50% of Copasa, will retain 5% of shares plus a golden share — veto power over strategic company decisions. ✓
Press quotes (3)
"Under the terms of Official Letter 7/2026, the privatization process shall adopt the same model used for a public offering of secondary shares issued by COPASA MG, with no primary component, subject to the rites for automatic offering registrations under CVM Resolution 160/2022, for issuers with large market exposure (EGEM) and with international placement efforts pursuant to Rule 144A issued by the U.S. Securities and Exchange Commission and Regulation S"
"Na transação, o estado ainda manterá 5% de ações na Copasa, na chamada 'Golden Share'. O modelo prevê um poder de veto do governo sobre ações estratégicas na companhia."
"Under the terms of Official Letter 7/2026, the privatization process shall adopt the same model used for a public offering of secondary shares issued by COPASA MG, with no primary component, subject to the rites for automatic offering registrations under CVM Resolution 160/2022,"
The privatization was authorized by Law 25.664/2025, enacted on December 23, 2025. The law requires the acquirer to meet targets for universalizing water supply and sewage services and to maintain social tariffs. Governor Mateus Simões (PSD) stated that municipalities will have six months to sign new contracts with the privatized Copasa and that regulation and tariffs will not be immediately altered. ✓
Press quotes (2)
"Sancionada e publicada no Minas Gerais desta terça (23), Lei 25.664 se originou de projeto do governador aprovado no Plenário da ALMG... autoriza o Governo de Minas a iniciar o processo de desestatização da Copasa... Quem adquirir a Copasa será obrigado a cumprir as metas de universalização dos serviços de abastecimento de água e de esgotamento sanitário"
"Simões afirmou que os municípios terão um prazo de seis meses para fechar novos contratos com a Copasa após o processo de privatização. "Não muda a tarifa, não muda a regulação, não mudam as obrigações de investimento."
Equatorial Energia controls electric power concessions in seven states and acquired in 2024 a 15% stake in Sabesp for approximately R$ 6.9 billion, assuming the role of strategic investor and co-management of the São Paulo company. The funds raised from the sale of Copasa will be used within the Full Payment Program for State Debts (Propag), in investments in infrastructure, security, and education, according to the governor. ✓
Press quotes (3)
"A Equatorial Energia é uma das maiores holdings multissetoriais (multi-utilities) do Brasil, se focando nos setores de energia elétrica e saneamento básico. No setor de energia, ela controla as concessionárias de: Alagoas, Amapá, Goiás, Maranhão, Pará, Piauí e Rio Grande do Sul."
"Ela também foi a empresa vencedora do processo de privatização da Sabesp, assumindo 15% da companhia de saneamento paulista."
"Em entrevista a O TEMPO na semana passada, o governador Mateus Simões relembrou que o recurso arrecadado com a venda da Copasa será usado dentro do Programa de Pleno Pagamento das Dívidas dos Estados (Propag), que determina investimentos em infraestrutura, segurança e educação."
The operation involved R$ 5.593 billion for the acquisition of 114,075,920 Copasa common shares at R$ 49.03 each, with a settlement ceremony held at B3 on June 16, 2026.
The Minas Gerais government, which held 50% of Copasa before privatization, will retain 5% of shares plus a golden share with veto power over strategic decisions.
Equatorial Energia controls electric power concessions in seven states (Alagoas, Amapá, Goiás, Maranhão, Pará, Piauí, and Rio Grande do Sul) and had acquired 15% of Sabesp in 2024 for approximately R$ 6.9 billion.
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (3)
Law 25.664/2025, which authorized the privatization, requires the acquirer to meet water and sewage universalization targets and maintain social tariffs, as confirmed by the Minas Gerais Legislative Assembly.
Governor Mateus Simões stated that municipalities will have six months to sign new contracts with the privatized Copasa and that regulation, tariffs, and investment obligations will not be immediately changed.
Former governor Romeu Zema (Novo), who spearheaded the bill to sell Copasa, celebrated the privatization at a Veja magazine event in São Paulo, regretting not having managed to privatize Cemig during his tenure.
-
What valuation methodology was used to establish the minimum price of R$ 47.23 per share, and who conducted the independent appraisal?
Why it's still unknown: None of the sources consulted detail the valuation method (discounted cash flow, multiples, book value) nor identify the firm responsible for the technical appraisal that generated the minimum price set for the offering.
-
What is the post-privatization regulatory framework that will determine the universalization targets, oversight, and penalties for Copasa under Equatorial's control?
Why it's still unknown: Although Law 25.664/2025 requires the acquirer to meet universalization targets and maintain social tariffs, no source details which regulatory agency (ANA, ARSAE-MG, municipalities via concession contracts) will exercise oversight, what the specific quantitative targets are (coverage percentage, deadline), or the mechanisms for penalizing non-compliance.
-
Why did the consortium of Aegea investors withdraw from the offering, leaving Equatorial as the sole bidder?
Why it's still unknown: Valor Econômico mentions the withdrawal, but no source explains the reasons — whether it was due to price assessment, due diligence, regulatory conditions, or other strategic considerations.