By Brazil Stock Guide – Copasa (CSMG3 BZ) told Brazil’s securities regulator that a recent ruling by the Minas Gerais state audit court does not prevent a potential share offering tied to the company’s privatization process, according to a filing. The utility said the decision allows preparatory steps to move forward, while recommending that final actions wait until the court completes its review.
The statement follows a ruling issued on Thursday (16), when the Tribunal de Contas do Estado de Minas Gerais (TCE-MG) authorized internal procedures related to the privatization but prohibited any measures that would result in a transfer of control to private investors at this stage.
Reporting judge Agostinho Patrus said in his opinion that it is necessary to distinguish between preparatory and definitive acts. Only internal steps that do not alter the company’s ownership structure are permitted for now, he said.
Authorized measures include technical studies, valuations, audits, and the preparation of structuring documents, as well as approvals within governance bodies. The court also allowed the company to file documents with the Comissão de Valores Mobiliários (CVM) and submit materials to Brazil’s stock exchange, B3 SA Brasil Bolsa Balcao (B3SA3 BZ).
Copasa said in its response that the TCE-MG ruling should be interpreted as guidance to postpone final steps rather than a prohibition of the process. The company added that the structure under review does not involve a sale notice or auction, as any divestment would be conducted through a public share offering.
The utility also noted it has not yet received a timeline from the Minas Gerais state government and will update the market when new information becomes available.