Sabesp continues to target the May to August period for the stock offering that will privatize the basic sanitation services company in the state of Sao Paulo, the company’s executive chairman, André Salcedo, said on Friday.
The company plans to use data from its first quarter results, due for release on May 9, to base interested investors on whether the state government will reduce its controlling stake in the company.
“This process begins in mid-May and continues through early August,” the executive said, during a conference call with analysts following the release of the company’s fourth-quarter 2023 results the night before.
Salcedo specified that Sabesp will have to complete the process to obtain creditors’ authorization to change control of the company in April and in May it will have to convene a new meeting to approve the company’s new bylaws, before launching the next share offering.
Sabesp plans to invest 8.1 billion reais this year, almost 29% more than those invested in 2023. For 2025, the projection is 11.5 billion reais, a figure that should increase in 2026 if the the company’s privatization plan will be completed, Salcedo specified.
The manager added that the company should complete the voluntary layoff plan launched last year by the end of June, estimating a reduction of around 15% of Sabesp’s workforce, or around 1,800 workers.
On the energy front, the company is evaluating the use of biogas, generated naturally in purification operations, in its operations from 2027 onwards, Salcedo said. The shareholding percentage in the company’s headquarters could reach 11%, he said.
Source: Terra
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