Sabesp - Material Fact

Rhea-AI Summary

Sabesp announced it will not acquire a stake in the SPV created for the concession of Block 2 of CEDAE, following an auction won by Iguá Saneamento S.A. This decision comes after a review of the auction's final terms. The company had previously indicated interest but ultimately opted out.

Positive

• None.

Negative

• Loss of potential ownership in a new SPV may limit future revenue opportunities.
• Decision indicates caution or strategic reconsideration which may reflect negatively on market confidence.

SÃO PAULO, May 5, 2021 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp") in compliance with the provisions of Article 157, Paragraph 4 of Law 6,404/76 and the provisions of CVM Instruction 358/02, in continuity to the Material Fact released on May 2, 2021, informs its shareholders and the market in general that, after analyzing the final terms of the auction for the concession of Block 2 of the Companhia Estadual de Águas e Esgotos do Rio de Janeiro (CEDAE), in which Iguá Saneamento S.A. ("Iguá"), was the winner, decided not to exercise the option to acquire a stake in the share capital of the Special Purpose Vehicle ("SPV') that will be created to exploit the said concession.

IR Contacts:
Mario Arruda Sampaio – (55 11) 3388-8664 (maasampaio@sabesp.com.br)
Angela Beatriz Airoldi – (55 11) 3388-8793 (abairoldi@sabesp.com.br)

View original content:http://www.prnewswire.com/news-releases/sabesp--material-fact-301285119.html

SOURCE Sabesp

FAQ

What did Sabesp announce on May 5, 2021?

Sabesp announced it will not acquire a stake in the SPV for the CEDAE concession after Iguá Saneamento S.A. won the auction.

What was the outcome of the CEDAE auction?

Iguá Saneamento S.A. won the auction for the concession of Block 2 of CEDAE.

How might Sabesp's decision affect its shareholders?

Sabesp's decision not to pursue a stake in the SPV could limit future revenue opportunities and affect market confidence.