EMAE says Sabesp now controls 79.3% of total company capital

Brazil’s Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) now controls 79.3% of the total capital of Empresa Metropolitana de Águas e Energia (EMAE), according to the utility company. This follows a series of transactions to strengthen its position in the São Paulo-based water and energy infrastructure firm.

Sabesp initially acquired 74.9% of EMAE’s common shares and 66.8% of its preferred shares in a $212 million deal announced in October 2025, giving it approximately 70% control. The acquisition, funded through a direct purchase from Phoenix Água e Energia SA and Centrais Elétricas Brasileiras SA, required regulatory and antitrust approvals. In January 2026, Sabesp further expanded its stake by acquiring a fund holding 9.22% of EMAE’s total capital through the Oceania investment fund for R$171.6 million, adding to its ownership.

To consolidate control, Sabesp also launched a public tender offer in February 2026, seeking to acquire up to 10% of EMAE’s common shares at R$49.46 per share, indexed to Brazil’s SELIC rate. While the final impact of the tender offer depends on shareholder participation, the company has already solidified its majority position.

Sabesp cited strategic synergies between water security and energy generation as key drivers of the expansion, aligning with its post-privatization growth strategy. The company's shares have risen over 50% since its privatization in 2025. EMAE’s updated capital structure reflects Sabesp’s ongoing integration of water and energy operations in the São Paulo region.