Copasa Board Backs Bylaw Overhaul to Enable Minas Gerais Share Sale

Overview

• The Minas Gerais government delivered privatization modeling to Copasa outlining a public secondary distribution of existing shares with no primary issuance.
• The offering is planned under CVM Resolution 160/2022 using the automatic registration route for large market-exposed issuers (EGEM).
• Copasa’s board approved proposals for bylaw changes, including converting one state-held common share into a golden share and consolidating the statute, to be put to an extraordinary general meeting and conditioned on the sale’s settlement.
• Copasa stated no public offer is underway and said any transaction depends on shareholder and creditor consents, market conditions, definitive contracts and compliance with securities rules.
• In a letter reported by G1, Governor Romeu Zema outlined parameters under consideration such as using proceeds to address the state’s federal debt, a potential strategic investor with about 30% ownership and lockup, a voting cap near 45%, possible state veto rights and scenarios for retaining a small post-sale stake.