The governor-elect of São Paulo, Tarcísio de Freitas (Republicans), suggested this Thursday (1st) that there is the possibility of selling Sabesp’s stake in the market and is targeting the Eletrobras model, based on offering shares on the Stock Exchange . The statement was given after a meeting with businessmen at the Commercial Association of São Paulo.
Sabesp is a company controlled by the government of São Paulo but with 49.7% of shares traded on the stock exchange, both in São Paulo and in New York. It serves 375 municipalities and, in 2021, it made a profit of R$ 2.3 billion.
During the event, Tarcísio said that the subject seemed forbidden in the past, but that this changed after discussion of the subject during the campaign.
In the vision of the future governor, the company should gradually lose value and will need an injection of resources from the private sector. The modeling of a possible privatization is studied by Tarcísio’s team, who see Eletrobras as a model to follow.
In the case of the energy company, the government reduced its stake in the company by offering shares. At Eletrobras, the federal government maintained veto power in corporate matters, to prevent new partners from having great influence over its management, through the so-called ‘golden share’.
“You don’t have to leave the company completely, you can simply relinquish control, keep a part, have a seat on the board, have a golden share, participate in strategic decisions. And then the company can gain value later on, you discuss again if will definitely go out of business or not,” he added.
The subject, however, is still under study. If a privatization model is not reached, the company would remain public, with a focus on increasing efficiency.
According to the elected governor, the costs per connection and per person can still improve, in comparison with the costs of the private initiative. “There is inefficiency. It is a very good company, which has already made great strides, it is listed on the Stock Exchange. It has excellent professionals, so we can work hard to increase efficiency,” he said.
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