Brazil's Minas Gerais Court of Accounts (TCE-MG) barred the state government on Thursday (16) from finalizing Copasa's privatization without a conclusive court ruling. It allows preparatory steps but prohibits transferring share control or starting share offerings. Any further actions require 48 hours' prior notice to the court.
The TCE-MG reached the decision in plenary session, following conselheiro Agostinho Patrus's vote. The court approved studies, audits, and document submissions to CVM and B3, but banned deals changing Copasa's share control.
"This decision does not authorize the privatization as a whole, but only specific reversible preparatory stages," Patrus stated in his vote, endorsed by fellow councilors.
After the session, conselheiro Durval Ângelo noted that publishing the privatization edital is not preparatory and is thus forbidden. "The process pace now depends on Copasa. The matter is now captive to the collegial body," he said. Deputy Bella Gonçalves (PT) celebrated: "The Court of Accounts put the brakes on the government's all-out push with Copasa".
Governor Romeu Zema's administration holds 50.3% of Copasa and plans to sell 45%: 30% to a reference shareholder and 15% via bookbuilding. Interested parties include Aegea and Sabesp, partnered with Equatorial. Shares rose from R$22.66 in November 2024 to R$57.66 on Wednesday (15).
The government supports desestatization to raise cash for repaying R$180 billion debt to the Union via Propag. Opposition calls the process rushed.
