Sabesp - Material Fact

Rhea-AI Summary

On May 2, 2021, Sabesp announced that it will not partner with Iguá Saneamento S.A., the winner of the auction for block 2 of CEDAE's concession held on April 30, 2021. However, Sabesp has a memorandum of understanding allowing it an option to join the SPV that holds this concession with a minority position. This option entails no cost to Sabesp, except for necessary capitalizations by shareholders to meet future obligations should it choose to exercise this option. Sabesp commits to keeping the market updated on this matter.

Positive

• Sabesp has an option to integrate into the SPV for block 2 concessions, allowing potential future involvement.
• The integration would come at no cost, indicating a strategic position without immediate financial risk.

Negative

• The decision not to partner with Iguá could indicate a missed opportunity for growth in new markets.
• The lack of immediate partnership may limit Sabesp's influence over the project.

SÃO PAULO, May 2, 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, informs its shareholders and the market in general that we did not partner with Iguá Saneamento S.A. ("Iguá"), winner of the auction to explore block 2 of the concession of the Companhia Estadual de Águas e Esgotos do Rio de Janeiro (CEDAE), held on April 30, 2021. However, under the terms of the memorandum of understanding signed with Iguá, we have an option to integrate the SPV  that holds  the block 2 concession, with a minority position and at no cost to Sabesp, except for the required capitalizations from shareholders in order to be entitled to the obligations of the future concessionaire, in case Sabesp decides to exercise this option.

Sabesp will keep the market informed of any developments on 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)

View original content:http://www.prnewswire.com/news-releases/sabesp---material-fact-301281790.html

SOURCE Sabesp

FAQ

What did Sabesp announce on May 2, 2021?

Sabesp announced it will not partner with Iguá Saneamento S.A. for block 2 of CEDAE's concession auction.

When was the auction for the CEDAE concession held?

The auction for the CEDAE concession was held on April 30, 2021.

Does Sabesp have any options regarding the Iguá partnership?

Yes, Sabesp has a memorandum of understanding allowing it to integrate into the SPV for block 2 with a minority position.

Is there any cost for Sabesp to join the SPV for block 2?

There is no cost for Sabesp to join the SPV, except for required capitalizations from shareholders.

How will Sabesp communicate developments regarding the concession?

Sabesp will keep the market informed of any developments regarding the concession.