Equatorial Becomes Reference Investor as Copasa Privatization Is Completed

Overview

• The privatization closed on June 16, 2026, when Equatorial bought 30% of Copasa for about R$5.5–5.6 billion and the state of Minas Gerais reduced its holding to roughly 5% while keeping a golden share.
• The secondary public offering sold 171,113,881 shares at R$49.03 each, raising about R$8.38 billion that the state must apply to federal debt repayment and Propag obligations.
• The deal includes long lock-ups to bind investors to sanitation goals, with half the sold shares restricted until June 2030 and the other half locked until December 2033 or until universalization targets are met.
• S&P National Ratings kept Equatorial’s national brAAA rating but warned the Copasa purchase will push leverage close to 5x by end-2026 and produce negative free cash flow through 2027, making near-term funding needs likely.
• Company and state leaders say Equatorial will prioritize sanitation investment to accelerate universalization while the golden share preserves state veto powers over key strategic decisions.