Sabesp - Material Fact: Hiring IFC to provide consulting services to the State - analysis of alternatives for restructuring Sabesp's share capital

Rhea-AI Summary

On September 29, 2021, Sabesp announced a recommendation from the State Privatization Program's Board to hire the International Finance Corporation (IFC) for consulting services. This involves analyzing potential alternatives for restructuring the company's share capital, in line with the New Sanitation Regulatory Framework and relevant state laws. The decision aims to enhance capital efficiency and will undergo evaluation by the Board at each relevant stage. Sabesp commits to keeping the market updated on any significant developments.

Positive

• Engagement with the International Finance Corporation may lead to enhanced capital restructuring.
• The initiative aligns with the New Sanitation Regulatory Framework, potentially improving operational efficiency.

Negative

• None.

SÃO PAULO, Sept. 29, 2021 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp"), pursuant to the provisions CVM Instruction nº 44, of August 23, 2021, hereby informs its shareholders and the market in general that, on a meeting held at this date by the State Privatization Program's Board (Conselho Diretor do Programa Estadual de Desestatização – CDPED), established by State Law nº 9,361, of July 5, 1996,  in view of the New Sanitation Regulatory Framework (Federal Law nº 14,026/2020), as well as State Law nº 17,383/2021, which defined the Regional Basic Sanitation Units for the State of São Paulo, unanimously resolved:

(i)  to recommend the hiring, by the Treasury and Planning Secretariat (Secretaria da Fazenda e Planejamento do Estado de São Paulo), of the International Finance Corporation – IFC, to provide consulting services to the State, consisting in the identification and analysis of possible alternatives for restructuring Sabesp's share capital; and

(ii)  at each relevant stage of the work to be carried out by the IFC, the matter should return to CDPED for evaluation and continuation.

Sabesp will keep the market informed of any developments related to the subject matter of this Material Fact.

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

 

 

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SOURCE Sabesp

FAQ

What is the recent announcement by Sabesp regarding share capital restructuring?

Sabesp announced it will hire the International Finance Corporation for consulting on restructuring its share capital.

When was the decision to hire IFC made by Sabesp?

The decision was made on September 29, 2021.

How will Sabesp's share capital restructuring be evaluated?

The restructuring will be evaluated at each relevant stage by the State Privatization Program's Board.

What regulatory framework underpins Sabesp's decision to restructure?

The New Sanitation Regulatory Framework and related state laws guide the restructuring decision.

What is the potential impact of hiring IFC on Sabesp's operations?

Hiring IFC may improve capital efficiency and operational restructuring for Sabesp.