Copasa Opens Major Share Sale That Could Cut Minas Gerais Stake to Near Zero

Overview

• Copasa filed for automatic registration with the CVM on May 21, 2026 to launch a secondary public offering that initially places 171.1 million shares and allows an extra 19.1 million shares.
• The State of Minas Gerais intends to reduce its current 50.03% holding to 5.03% or fully exit if the additional lot is sold.
• The initial tranche is sized at about R$9.029 billion and could reach roughly R$10 billion with the extra lot, and the sale will be coordinated by BTG Pactual, Itaú BBA, Bank of America, Citi and UBS BB.
• Market positioning has shifted with Sabesp declining to participate while Aegea remains a possible bidder, and the deal requires large financial guarantees reported around R$7 billion that limit realistic bidders to the biggest operators or well‑backed consortia.
• Proceeds will go to the selling shareholder, not to Copasa, and the privatization raises questions about how private owners will fund the heavy investments needed to meet Brazil’s 2033 universal water and sewage target for the roughly 893 municipalities Copasa serves.