By Brazil Stock Guide – Simpar SA (SIMH3) sold its waste-management unit Ciclus Rio to Aegea Saneamento for an enterprise value of R$1.9 billion ($348 million), a transaction that analysts say underscores the gap between the holding’s market value and the intrinsic worth of its portfolio. The deal, reported by InfoMoney, includes R$1.1 billion in equity and R$800 million in net debt.
Genial Investimentos called the sale positive, noting that the proceeds represent about 31% of Simpar’s current market capitalization. The transaction was priced at 10 times EV/EBITDA, compared with around 4x for Simpar’s own shares, though below the waste-management sector average of 15x.
“Although the asset accounted for just about 2% of consolidated EBITDA, it was monetized for nearly one-third of the company’s market cap,” Genial wrote. “This reinforces the view that Simpar’s subsidiaries hold unrecognized value.”
The sale is aligned with Simpar’s strategy of recycling mature assets and comes at a time of elevated leverage — 3.6x net debt/EBITDA as of the second quarter of 2025. While the impact on consolidated leverage is modest, trimming between 0.1x and 0.2x, at the holding level it helps ease about R$3 billion in debt. Genial acknowledged that Ciclus was a cash-generating business with potential in renewables and carbon credits but said deleveraging remains the priority.
A technical factor may also support Simpar’s stock. Short interest in SIMH3 stands at about 35%, one of the highest on Brazil’s B3 exchange, meaning the combination of a relevant transaction relative to market cap and heavy short positioning could amplify upside momentum.
XP Investimentos also praised the deal, citing three key points: an implied annual return of about 30% for the investment, a meaningful reduction in reported net debt, and a valuation of 9.8x EV/EBITDA versus around 14x for peer Orizon (ORVR3).