Brazil's Copasa privatization raises $8.4bn, Equatorial Energia becomes largest shareholder

The Companhia de Saneamento de Minas Gerais (Copasa) completed a two‑phase secondary share offering that raised R$ 8.4 billion, making it Brazil's second‑largest sanitation‑sector privatization after Sabesp. Equatorial Energia acquired a 30% stake for R$ 5.6 billion, becoming the largest individual shareholder. The Minas Gerais state government reduced its holding from 50% to 5%, retaining a golden share with veto power.

Shares were priced at R$ 49.03, with the base lot of 56.4 million shares sold for R$ 2.8 billion. Investor demand exceeded R$ 70 billion, but an additional 5% tranche was not sold. Long‑term institutional funds accounted for about 85% of buyers, while hedge funds made up the remaining 15%. The transaction was led by BTG Pactual with coordination from UBS, BB, Itaú BBA, Citi and Bank of America.

Equatorial Energia pledged to universalize water and sanitation access in Minas Gerais by 2033, describing the sector as a priority growth avenue. On the day of the deal the Copasa share price closed at R$ 58.50, representing a 16% discount to market levels.