Sabesp closes Emae merger offering 1.395 shares per stock

On Wednesday, 16 September 2026, Sabesp and Empresa Metropolitana de Águas e Energia (Emae) concluded the full share merger of the São Paulo utility. An extraordinary general meeting approved the transaction, establishing that Emae shareholders will receive 1.395 Sabesp common shares for each common or preferred share they hold.

Emae shareholders wishing to exercise withdrawal rights will receive BRL 18.18 per share, calculated from Emae's net equity per share on 30 June. This exit payout stands far below the BRL 61.83 per share Sabesp offered in a proposed tender offer that minority investors rejected in June. The deadline to request withdrawal ends on 19 October.

Ahead of the vote, Sabesp held 79.2% of Emae's total shares, while 14.2% traded freely and one minority shareholder held 6.04%. If withdrawal demands threaten financial stability, Emae management may call an assembly within 10 days after 19 October to reconsider or cancel the merger. Fractional shares will be bundled and auctioned on the B3 spot exchange, with proceeds paid directly to Emae investors.

The transaction completes a sequence that started when the Phoenix Água e Energia fund bought Emae shares at BRL 70.65 each in 2024 for over BRL 1.04 billion before facing loan servicing issues. Sabesp subsequently bought out the fund and acquired an additional stake from Axia Energia (Eletrobras) for BRL 1.13 billion. Emae moved from a profit of BRL 29 million in 2024 to a loss of BRL 133.4 million in 2025, hurt by more than BRL 140 million in losses on Letsbank certificates of deposit and concession contract asset revaluations.