Aegea Saneamento announces Itaúsa as the company’s newest strategic investor. With an initial contribution of R$ 1.33 billion, Itaúsa, a Brazil-based investment holding company, now holds a 10.20% equity interest in the company. The interest will be composed of the initial acquisition of 8.32% for R$ 1.065 billion in common shares held by Equipav and a capital increase of 2.09% in the amount of R$274.8 million in new shares.
Singapore’s sovereign fund, GIC, is also contributing to the capital increase with R$ 64.8 million, maintaining its equity interest of 19.08% in the company’s common stock. Therefore, combining the contributions from Itaúsa and GIC, the company will receive a total cash injection of R$ 339.60 million.
Aegea’s ownership structure, after the Investment Agreement and considering the common shares, will be as follows: 70.72% held by Equipav Group, 19.08% by Singapore’s sovereign fund GIC and 10.20% by Itaúsa.
The arrival of a new shareholder further strengthens the capital structure of Aegea Saneamento and ensures the continuity of the growth strategy of the company, which surged from six cities served to 126 cities in 2021.
“Having Itaúsa as a new shareholder means not only reinforcing our capital structure, but also being able to count on the expertise of Brazil’s largest investment holding company. This will help us to further reinforce our governance, compliance policies and transparency in information access. Furthermore, Itaúsa’s entry into the business reinforces our commitment to working together to reduce the country’s sanitation deficit, which leaves 100 million Brazilians without sewage collection and treatment and another 35 million without access to drinking water,” said Radamés Casseb, CEO of Aegea Saneamento.
Itaúsa is a Brazil-based investment holding company founded 45 years ago. It has a diversified portfolio of companies that are industry leaders, such as Itaú Unibanco, Alpargatas, Duratex, Copagaz and NTS, and is present in over 50 countries. The company has around 900,000 individual shareholders, making it one of the largest shareholder bases on the Brazilian stock exchange.
“The investment in Aegea reaffirms our strategy to diversify our portfolio, which will join strong brands that are industry leaders and with excellent potential for creating value. We are entering a sector that is essential to the country’s development, which is basic sanitation, and where we believe we can make a difference and cause positive impacts on the lives of millions of Brazilians,” said Alfredo Setubal, CEO of Itaúsa. “The synergy of values, such as our shared commitment to sustainability and long-term vision for delivering consistent results to our shareholders, were decisive factors in this partnership,” he concluded.
In less than ten years of history, Aegea has registered exponential growth, with strong expansion in the number of cities served, especially after winning three of the four auctions held in the sector in 2019 and 2020. This growth was possible only thanks to its business model, which is based on operating efficiency, achieving goals and responsible investments, in line with Environmental, Social and Governance (ESG) principles.