Sabesp announces the election of a new CEO for the post-privatization company (Image: Facebook-Sabesp)
A Sabesp (SBSP3) informed the market this Wednesday (25) that the board of directors, unanimously, elected, on September 24, 2024, Carlos Augusto Leone Piani to the position of CEO, replacing Andre Salcedo. Piani will take office on October 1, 2024.
According to the company's statement, the natural transition of leadership occurs after the conclusion of the privatization process, concluded in July of this year.
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“We will continue the company's modernization process, initiated by Andre Salcedo, accelerate synergies, generate more value for shareholders and ensure delivery of the targets set out in the contracts, such as the mission of ensuring that the results presented are even more consistent”, says Piani.
With a degree in Business Administration from IBMEC/RJ and in Data Processing from PUC-Rio, the new CEO has over 20 years of experience in investments, mergers and acquisitions and has held several executive positions. He is currently a member of the board of directors of Hapvida Participações e Investimentos and Modular Data Centers.
Carlos Piani has worked for companies such as HPX Corp, Vibra Energia, Banco Pactual Kraft Heinz, PDG Realty and Vinci Partners. He also served as president and CFO of Equatorial Energia, which is now a major shareholder of Sabesp.
Privatization of Sabesp
In July, the operation that privatized Sabesp moved a total of R$ 14.8 billionincluding the R$6.8 billion paid by the reference shareholder
The company was already operating under a mixed economy, with the government of São Paulo holding more than 50% of the shares. Now, it is officially a former state-owned company. After the offering, the state held approximately 18% of the capital and Equatorial held 15% of the shares.
Safra analysts highlight that the company is supported by better governance and regulation, which created incentives for universalizing services, improved coverage of operating costs and allowed the inclusion of certain non-manageable expenses in tariffs, limiting potential interference from the regulator.
“In addition, the new bylaws include a long lock-up period for its reference investor, as well as clauses for poison pill to avoid a hostile takeover and non-compete that should allow the company to continue to grow in the future.”
Among the risks involving the company, Safra highlights:
- Rhythm of turnaround;
- Compliance with universalization targets, in view of the significant investments required, otherwise the company will be subject to penalties, such as tariff discounts and restrictions on the distribution of dividends;
- Political disputes with mayors, due to the upcoming elections, as well as legal disputes challenging the terms of privatization.
Regarding the last point, Safra sees limited risks, since the new concession contract was established with a group of municipalities and all processes related to privatization were approved in accordance with current legislation.