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Sabesp, a Brazilian company, announces the acquisition of EMAE by Sabesp for $212 Million

Sabesp, a Brazilian water utility, announced on Sunday that it had agreed to purchase a 70.1% share in Empresa Metropolitana de Agua e Energia EMAE across multiple classes of shares for 1.13 billion reais (212 million dollars).

EMAE is a Brazilian company that owns and operates a hydro-electric power generation system. This system is located in Sao Paulo, the Baixada Santista coast area, and the MedioTiete region.

The acquisition of Sabesp, which combines water security and energy generation, strengthens synergies between the company's businesses, and creates a more robust platform to tackle climate challenges and the rising demand for services essential, according to a filing with the Securities and Exchange Commission.

Two separate agreements will be used to acquire a controlling stake.

The first agreement, with Vortx representing the bondholders of Phoenix Agua e Energia S.A. involves the purchase by EMAE of 74.9% its common shares.

Sabesp will acquire 66.8% EMAE preferred shares, held by the power company Eletrobras, in a second transaction that is conditional upon the first.

Sabesp stated in its filing that the transactions were separately negotiated and subject to regulatory and antitrust approval. ($1 = 5.3348 reais) (Reporting by Lisandra Paraguassu; writing by Marcela Ayres; Editing by Cynthia Osterman)

(source: Reuters)