Equatorial Wins $1.1 Billion Strategic Stake in Copasa
Brazilian power company Equatorial has agreed to purchase a 30% stake in sanitation firm Copasa for 5.59 billion reais. The deal is part of a privatization process led by the Minas Gerais government.
EQUATORIAL SA - ORD secured a 30% stake in Brazil utility Copasa for 5.59 billion reais ($1.10 billion) on Wednesday. The bid prices the strategic investor role at 49.03 reais per share, which is 3.8% above the minimum price set by the state government. The deal facilitates the privatization of the Minas Gerais state sanitation provider that serves 12 million people.
### Privatization Process and Stake Acquisition EQUATORIAL SA - ORD faced no competition for the strategic stake after a consortium led by Aegea withdrew. That group included ITAUSA SA and Singapore sovereign wealth fund GIC. The withdrawal followed a revised bidding process after initial offers last week failed to meet the government's minimum valuation.
