Brazil's Minas Gerais state forced to review sale of stake in Copasa utility

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP

27/05/2026 18:16

By Alberto Alerigi and Luciana Magalhaes
SAO PAULO, May 27 (Reuters) - Brazil's southeastern Minas Gerais state will need to review the privatization process of water and sewage utility Copasa CSMG3.SA after bids from potential anchor investors fell below the government's minimum asking price, a source told Reuters on Wednesday.
"It didn't reach the price, and there will be a rebid," the source said, asking to remain anonymous because the process is private.
Copasa confirmed that its secondary share offering, registered last week, would be amended at the request of the selling shareholder, the Minas Gerais state   government. Neither of the parties disclosed the nature of the changes.
The announcement of a potential anchor investor had originally been scheduled for Wednesday. Copasa shares were down 5% in early afternoon trading, leading the losses on Brazil's Bovespa stock index .BVSP.
Bidders included a consortium of Itausa ITSA4.SA, Singapore's sovereign wealth fund GIC, and concessions-focused investment platform Equipav, which submitted an offer through a vehicle called Livorno.
Under the original plan, Minas Gerais, which holds 50% of Copasa, would sell a 30% stake to an anchor investor for roughly 6 billion reais ($1.19 billion), offer 15% to other investors for an additional 3 billion reais, and retain a 5% holding.

(Reporting by Luciana Magalhaes and Alberto Alerigi Jr; Editing by Paul Simao)
((Luciana.NovaesMagalhaes@thomsonreuters.com;))