Tarcísio authorizes studies to privatize Sabesp and Emae – 02/28/2023 – Market

The governor of São Paulo, Tarcísio de Freitas (Republicans), announced this Tuesday (28) that he authorized the start of studies for the privatization of Sabesp (Basic Sanitation Company of the State of São Paulo) and Emae (Metropolitan Company of Water and Energy).

Sabesp’s evaluations will begin in March and will have the objective of defining the viability of privatizing companies in São Paulo.

At the beginning of the year, the governor said that he intends to complete the privatization of Sabesp by 2024. In addition, he said that he considers the model made with Eletrobras, privatized last year by the federal government through a share offering that diluted control to be good. of the company on the stock exchange.

The governor admits, however, that he may give up privatization if the tariff becomes more expensive. “If we see that the tariff is going to explode, without the security that will not decrease and the efficiency that we imagined, we can take a step back”, said the governor.

The governor mentioned the plan during the announcement of a package with more than ten concession projects and partnerships with the private sector, most in the area of ​​transport.

Sabesp serves more than 27 million people in 375 municipalities in São Paulo. The government holds 50.3% of the company’s share capital, and the remaining shares are traded on the São Paulo Stock Exchange and the New York Stock Exchange (USA).

Emae operates in the hydroelectric power generation sector and is also controlled by the state of São Paulo.