Equatorial Secures 30% Stake in Copasa Privatization Deal

Equatorial has solidified its dominance in Brazil’s sanitation sector by acquiring a 30% stake in Copasa for 5.59 billion reais, roughly $1.1 billion. The move follows the withdrawal of a rival consortium, positioning the power company as the primary strategic partner in the Minas Gerais government’s ongoing privatization effort.

The government of Minas Gerais launched the share sale in May, targeting a reduction of its control over the utility firm that provides sanitation services to 12 million residents. Equatorial secured the interest by bidding 49.03 reais per share, a 3.8% premium over the government’s established floor price. The acquisition proceeded after a competing group led by Aegea exited the bidding process.

Currently, the state holds slightly more than 50% of Copasa’s equity. A second phase of the offering is scheduled for June 11, which could elevate Equatorial's total stake to 42.6%. This investment mirrors the company's aggressive expansion strategy, following its significant entry into Sao Paulo’s Sabesp earlier this year.