SAO PAULO, May 13, 2017 /PRNewswire/ -- Companhia de
Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or
"Sabesp"), pursuant to the provisions of Article 157, Paragraph 4
of Law No. 6.404/76 and the provisions of CVM Instruction No.
358/02, announces to its shareholders and to the market in general
that, the State Privatization Program's Board, established by
the State Law 9.361, dated as of July
5th, 1996, unanimously resolved, on this date
("Resolution"):
(i) To proceed with studies on alternatives for the
Capitalization of Sabesp ("Capitalization");
(ii) The hiring, by Sabesp, of the International Finance
Corporation ("IFC"), an institution bound to the World Bank;
and
(iii) The conclusion of an agreement between Sabesp and the São
Paulo State Government, through the Secretariat of Sanitary and
Water Resources and the Secretariat of Finance, to delineate the
scope of the IFC's hiring and to govern the relationship between
the contracting parties, including proportional reimbursement of
expenses.
The proposed Capitalization provides the establishment of a new
company to exercise Sabesp's direct corporate control after the
conference of the totality of share interest owned by the São Paulo
State Government into the stock capital of the new company. São
Paulo State Government will continue, under any circumstances, to
hold sufficient shareholding interest to assure the exercise of
Sabesp's majority corporate control, as provided by law. The
purpose of the Capitalization is to overcome financial
restrictiveness and preserve the expansion of the activities of
universalization of basic sanitation services promoted by the
Company.
If further studies are implemented, new information will be
disclosed regarding the possible Capitalization, which, if
continued, may provide for the admission of institutional investors
in order to fund the new company's share capital, allowing to
strengthen Sabesp's corporate governance and business efficiency in
order to preserve the development of its activities of universal
sanitation services in the São Paulo
State.
During this process the Company will disclose any relevant
developments over this subject.
The Resolution is available on Sabesp's Investor Relations
website, section Material Facts.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/material-fact-300457150.html
SOURCE Sabesp