Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (SBSP3) and EMAE – Empresa Metropolitana de Águas e Energia S.A. reported in a joint material fact on Tuesday, October 20, 2026, that the period for exercising withdrawal rights in the transaction involving the merger of EMAE shares into Sabesp ended on October 19, 2026, without any requests from dissenting shareholders.
As a result, the companies clarified that no amount will be paid as reimbursement to EMAE shareholders and that the prerogative set forth in article 137, paragraph 3, of the Brazilian Corporations Law will not be applied.
According to the share merger schedule, October 23, 2026, will be the last trading day for EMAE-issued shares on B3. On October 27, 2026, EMAE shareholders who hold shares on that date will receive Sabesp-issued common shares, traded under the ticker SBSP3, at the exchange ratio of 1.31950000000 Sabesp common share for each 1 EMAE common or preferred share.
The material fact also specifies that any fractions of Sabesp common shares resulting from the exchange ratio will be grouped into whole numbers and sold on B3’s cash market, with procedures to be disclosed in a specific notice.
The companies also reiterated that EMAE shareholders may be subject to taxation on any capital gain arising from the share merger, and that each investor, whether resident in Brazil or not, must observe the applicable tax rules. For investors who are not tax residents in Brazil, Sabesp may withhold Income Tax at source and, if necessary, deduct the corresponding amount from the number of Sabesp shares to be delivered.
