Companhia de Saneamento Básico do Estado de São Paulo (SABESP) confirmed the timetable for its merger of shares issued by EMAE – Empresa Metropolitana de Águas e Energia S.A. October 23, 2026, is the last trading day for EMAE shares on B3. EMAE shareholders holding shares on October 27, 2026, will receive 1.31950000000 SABESP common shares for each EMAE common or preferred share.
No shareholders exercised the withdrawal right, so no reimbursement will be paid. Fractional SABESP shares resulting from the merger will be grouped into whole shares and sold on B3’s spot market after consummation. For non-resident investors, SABESP is responsible for withholding income tax on any capital gain; a 25% rate applies if an investor does not provide their tax residence or confirm their classification within the applicable deadline. SABESP may deduct an amount equivalent to tax withheld from the SABESP shares otherwise due to that investor.
Sabesp (SBS) and EMAE updated the estimated timetable for Sabesp to incorporate all EMAE shares it does not hold, with Sabesp common shares to be delivered to EMAE shareholders. The companies’ shareholders’ meetings were held on July 30 and September 16, 2026, respectively.
The Withdrawal Right period began September 18, 2026 and ends October 19, 2026; reimbursement to shareholders who exercise it is scheduled for October 21, 2026. EMAE’s last trading day on B3 is October 23, 2026. Sabesp is scheduled to confirm consummation and credit its shares to EMAE shareholders on October 27, 2026. B3 and the New Bookkeeping Agent are scheduled to confirm any fractional shares on November 4, 2026; any auction and payment for fractional shares are to be scheduled as applicable.
SABESP clarified that its shareholder-approved amended bylaws, including a corresponding share-capital increase, have not yet taken effect. Shareholders approved the amendments on July 30, 2026; they will become effective when certain corporate events are completed. SABESP intends to update investors promptly after those events.
SABESP (SBS) sets out its corporate, capital and governance rules in bylaws. Its share capital is R$ 21,504,996,560.05, fully subscribed and paid-in, divided into 3,534,409,282 common shares and one special class preferred share held exclusively by the State of São Paulo. The Board may increase capital within an authorized limit of 6,042,708,620 common shares. Each common share carries one vote, but any shareholder or group may exercise no more than 30% of total voting share capital. The Board has nine members, at least three independent.
A shareholder or group reaching 30% or more of share capital generally must make or request registration of a public offer for all shares within 60 days, subject to stated exceptions. The State's special share has veto rights over changes to the company name or principal place of business, a corporate-purpose change implying suppression of the primary water and sewage activity, and limits on shareholder voting rights; it is extinguished if the State ceases to hold common shares representing at least 10% of share capital. Common shares carry a minimum mandatory dividend of 25% of annual net profit after legally required deductions.
COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP (SBS) reports that EMAE shareholders have approved the merger of all EMAE shares not already held by Sabesp into Sabesp, completing shareholder approvals on both sides. Each EMAE common or preferred share will be exchanged for 1.31950000000 Sabesp common share on the consummation date. EMAE shareholders who qualify as dissenting shareholders may instead exercise statutory Withdrawal Rights and receive cash reimbursement at R$ 18.18 per EMAE share, based on book value as of June 30, 2026, by submitting their request by October 19, 2026.
The filing details strict eligibility conditions tied to continuous EMAE share ownership since April 23, 2026, and explains that Sabesp shareholders do not have withdrawal rights. It also outlines Brazilian tax treatment, including that Sabesp will withhold and collect Withholding Income Tax on capital gains from the share exchange for non‑resident investors, at rates from 15% to 25% or progressive brackets up to 22.5%, based on investor classification and tax residence. An estimated timetable lists key dates for the withdrawal period, change of EMAE’s bookkeeping agent, and later settlement, credit of Sabesp shares, and sale of fractional shares on B3.
Companhia de Saneamento Básico do Estado de São Paulo – SABESP reported higher scale but weaker profitability for the quarter ended June 30, 2026. Consolidated net revenue reached R$10,209 mn, up 13.9% year over year, while adjusted net revenue from sanitation services rose 6.7% to R$6,013 mn.
Adjusted EBITDA was R$3,503 mn, down 3.2%, and adjusted net income fell 41.2% to R$1,150 mn, with adjusted EPS at R$0.33 versus R$0.57 in 2Q25. Profitability was pressured by a 24.5% increase in costs and expenses, notably higher services, general expenses after prior-year legal wins, and inflation on treatment supplies, as well as a much weaker net financial result linked to higher net debt of about R$34.2 bn.
The company continued an intensive investment and transformation program, with R$3,731 mn in capex in 2Q26 and R$7,458 mn in 1H26, mainly in water and sewage universalization. SABESP also consolidated control of energy company EMAE and of Águas de Castilho, broadening its utility footprint while increasing total borrowings to R$51.7 bn and lifting the leverage ratio to 43%.
Companhia de Saneamento Básico do Estado de São Paulo – Sabesp reported mixed results for the quarter ended June 30, 2026. The release states that figures consider the 1:5 stock split approved at the April 28, 2026 EGM. Net revenue reached R$10,209 mn, up 13.9% year over year, driven by construction revenue and a 6.7% increase in adjusted sanitation net revenue to R$6,013 mn. Reported EBITDA was stable at R$3,906 mn, but adjusted EBITDA fell 3.2% to R$3,503 mn, with margin compression.
Net income declined 31.4% to R$1,464 mn, and adjusted net income dropped 41.2% to R$1,150 mn, with adjusted EPS at R$0.33 versus R$0.57 in 2Q25. Management cites higher operating costs and expenses, up 24.5%, especially services tied to customer-focused initiatives, legal-comparison effects in general expenses, and inflation in treatment supplies, plus a much weaker net financial result on higher net debt of R$34 bn versus R$23 bn. Despite earnings pressure, Sabesp accelerated its transformation and universalization agenda, investing R$3,731 mn in 2Q26 and R$7,458 mn in 1H26, and generated free cash flow from operations of R$3,366,064 thousand.
Companhia de Saneamento Básico do Estado de São Paulo – SABESP reports that its Extraordinary Shareholders’ Meeting approved the merger into SABESP of all shares issued by EMAE – Empresa Metropolitana de Águas e Energia S.A. that are not already held by SABESP. EMAE’s shareholders, other than SABESP, are to receive common shares issued by SABESP under the previously disclosed Protocol and Justification for the Merger of Shares.
The effectiveness of this Merger of Shares is conditional on approval by EMAE’s own Extraordinary General Shareholders’ Meeting. The Brazilian Securities Commission (CVM) has postponed that EMAE meeting for 30 days from the date EMAE provides additional information requested by CVM to its shareholders. SABESP states that further material information on the merger, including EMAE’s approval, will be disclosed in accordance with applicable law and regulations, and notes that statements about future events are subject to risks and uncertainties as described in its forward-looking statements disclaimer.
Sabesp and EMAE have agreed terms for a share-for-share merger in which Sabesp will acquire all EMAE shares it does not already own. EMAE shareholders will receive 1.3195 Sabesp common share for each EMAE common or preferred share, migrating EMAE’s shareholder base into Sabesp. After completion, EMAE will become a wholly owned subsidiary, its shares will cease trading on B3’s Traditional segment, and it will move from Category “A” to Category “B” registration.
The companies cite expected benefits such as simplifying their corporate structure, reducing overlapping costs and integrating operations to improve efficiency. Estimated transaction costs total about BRL 4.45 million, of which up to BRL 2.3 million relates to EMAE. EMAE minority holders who dissent will have withdrawal rights at approximately BRL 16.79 per share, subject to Brazilian corporate law conditions, and the merger still depends on approval at both companies’ extraordinary shareholders’ meetings.
COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP reported that Engineering Officer Roberval Tavares de Sousa sold 5,900 Common Shares in an open-market transaction on May 25, 2026 at $5.74 per share.
After this sale, he directly holds 76 Common Shares. The reported sale price is equivalent to R$28.81 per share, using an exchange rate of R$5.0174 per U.S.$1.00 as quoted by the Brazilian Central Bank on May 25, 2026.