Sabesp's Privatization Plan Unveiled, Shares Surge

Sao Paulo government initiates two-stage privatization process for Sabesp, aiming to enhance efficiency and attract strategic investors.

Sabesp shares jumped as Sao Paulo announced a two-stage privatization plan, starting with the selection of two strategic shareholders.
The innovative sale model is designed to increase company value and attract investors focused on governance and efficiency.
Strategic investors will anchor a broader market offering, with the highest bidders gaining significant shareholding.
Sao Paulo aims to reduce its stake in Sabesp from 50.3% to as low as 18%, potentially divesting about $3.4 billion worth of shares.
The privatization process, expected to conclude by mid-year, will include a lock-up period until 2029 and a golden share for the state to ensure service goals are met.