By Brazil Stock Guide – Rio de Janeiro’s government is weighing the partial sale of shares in Cedae, the state-owned water and sewage utility, while ruling out a full privatization. Nicola Miccione, the state’s chief of staff, said the administration has no plans to cede control of the company in the short or medium term. The remarks were made Tuesday at the “Diálogos RJ” event, hosted by Editora Globo.
“The state will not lose control of Cedae in the short term, nor in the medium term, because there is no political environment or will for that,” Miccione said, according to Valor Econômico. “It’s an important asset to remain in the hands of the state.”
The government commissioned a study earlier this month to explore strategic options for the company, which earned over 1 billion reais ($180 million) in profit in 2024. The move has drawn scrutiny from lawmakers in the state assembly.
Miccione said no decision has been made about listing shares but stressed that analyzing scenarios is a natural step. “It’s similar to what Sabesp (BVMF: SBSP3) did years ago until it reached a solution,” he said.
Alternatives under review include a restructuring of Cedae’s capital structure, potentially involving a minority share sale, new private partners, or debt issuance in capital markets. “We can consider alternatives such as appointing one or two board members from the private sector to bring greater modernization, but in a very thoughtful and careful way,” Miccione added.
Any decision will require discussions with the state audit court and the legislative assembly, he said.
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