By Brazil Stock Guide – Brazil’s Companhia de Saneamento Básico do Estado de São Paulo, or Sabesp (SBSP3 BZ), signed an agreement on Thursday (12) to acquire 100% of the units of the Oceania investment fund for R$171.6 million, gaining indirect ownership of shares in Empresa Metropolitana de Águas e Energia, Emae (EMAE4 BZ).
The Oceania fund’s sole asset consists of 3,407,000 ordinary shares of Emae, representing 23.17% of the company’s voting shares and 9.22% of its total share capital.
Under the agreement, the purchase price will be paid in cash on Friday (13) and is not subject to further adjustments, according to a statement released by Sabesp.
The transaction price corresponds to the per-share value offered under the public tender offer for Emae’s ordinary shares, updated by Brazil’s benchmark Selic interest rate through Wednesday (11). This results in a final price of R$50.38 per share.
The deal increases Sabesp’s exposure to Emae, a company involved in water resources management and power generation in the São Paulo metropolitan region.