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Some argue that privatization has the potential to reduce company expenses, resulting in greater efficiency and financial stability. Furthermore, transferring control to the private sector could generate a significant increase in profits, benefiting the organization as a whole.
According to Queiroz, there are two factors that can influence share prices: the period necessary to complete the privatization and the amount of penalties for delays in the execution of basic sanitation projects.
These two points have the potential to significantly impact share valuation, highlighted Queiroz. He also highlighted the importance of considering these aspects when analyzing stock market behavior in the context of privatization and the sanitation sector.
The plan privatization of Sabesp advances to voting in the plenary session of the Legislative Assembly of São Paulo. Deputies are expected to discuss the text during the first week of December. A report by Genial Investimentos highlights that the project may still undergo changes in this next phase, with the inclusion of amendments by legislators.
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According to Hugo Queiroz, director of Corporate Advisory at L4 Capital, it is unlikely that something similar to what happened with Eletrobras will occur, in which harmful amendments were added to the energy company at the end of approval. 'Sanitation contracts are more complex and are divided into several cities, which makes it difficult to include harmful amendments', said the expert, highlighting that sanitation contracts are more tied up and fragmented in several municipalities, which makes it difficult to include many tortoises.
Impact of Privatization da Sabesp, according to Guide Investimentos
According to the Guide Investimentos report, the approved text presented few changesactions in relation to what was proposed by the government of São Paulo on October 17th. The main change was the inclusion of a guarantee of stability for employees of the Sabesp for 18 months, as indicated in the document.
Analysts claim that the privatization It can result in a reduction in the company's costs, in addition to bringing gains in efficiency and predictability. According to Passos, “when privatized, the company will no longer need to carry out biddingactions for all purchases, which will help streamline processes.”
Experts are confident about the speed at which the process of privatization da Sabesp. On July 22nd, state parliamentarians from São Paulo approved the project report privatization of the company in the committees of the Legislative Assembly of São Paulo (Alesp).
“Approval within the schedule established by the government is favorable and increases expectations that the privatization be completed quickly, this year”, explains Rafael Passos, specialist at Ajax Asset.
Source: InfoMoney
