São Paulo to Keep Control Over Sabesp After Partial Sale

By Iolanda Fonseca · October 18, 2023 · 2 min read

São Paulo’s Governor, Tarcísio de Freitas, recently highlighted plans for Sabesp’s partial privatization.

In a press conference, he confirmed the government’s intent to remain a major shareholder post the sale of some company stocks.

This move is a segment of a broader “follow-on” plan where the government lessens its stake but still maintains its influence.

Freitas shared that São Paulo’s Legislative Assembly will urgently evaluate the privatization bill between late November and early December.

Furthermore, the government will maintain a “golden share”, granting veto rights over crucial company decisions.

He remains confident about the legislative journey, emphasizing its alignment with current laws.

São Paulo to Keep Control Over Sabesp After Partial Sale.

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He downplayed legal challenge fears, seeing them as lacking a strong legal foundation.

Addressing tariffs, Freitas mentioned there would be no rate increases due to new company investments and its generated profits.

The São Paulo government plans to establish a Sanitation Support Fund. This fund will obtain at least 30% of its resources from the Sabesp stock sale and some company profits.

Background

Founded in 1973, Sabesp provides vital water and sewage services to many São Paulo municipalities.

Debates over its privatization have been a hot topic for a while. The “golden share” concept isn’t new, especially for vital companies.

It ensures the government retains some control over crucial decision-making.

This strategy mirrors global shifts in semi-privatizing utilities to lure private investment, ultimately enhancing efficiency and service quality.

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Live Company IntelligenceCompanhia de Saneamento Básico do Estado de São Paulo – SABESP — the full investor dossierInside: live share price, market cap, three-year financials, valuation, ESG and peer benchmarks — plus the latest Rio Times coverage.

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◆ Live Company Intelligence

Companhia de Saneamento Básico do Estado de São Paulo – SAB

SA: SBSP3SBSP3UtilitiesUtilities – Regulated Water8,914 employees

R$118.16B

Market cap

Valuation & profitability

Market capR$118.16B

Revenue (TTM)R$40.88B

P / E ratio14.3

Profit margin19.7%

Return on equity18.8%

Price & risk

52-wk low
$23.1752-wk high
$35.32

Beta (volatility)0.08

200-day average$28.85

Revenue trend · 6y

20202025

Latest R$38.09B

Ownership

Institutions45.0%

Shares outstanding3.52B

Dividend

Yield2.0%

Payout ratio41.2%

Fwd. annual$0.69

What Companhia de Saneamento Básico do Estado de São Paulo – SAB does. Companhia de Saneamento Básico do Estado de São Paulo – SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. It supplies treated water and sewage services on a wholesale basis. Companhia de Saneamento Básico do Estado de São Paulo – SABESP was founded in 1954 and is headquartered…

Data: RT fundamentals (SBSP3.SA) · figures in BRL · as of 13 Oct 2026More company intelligence →

This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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