SAO PAULO, Brazil, Dec. 19, 2003 -- Cia. de Saneamento Basico do Estado de Sao Paulo's (Sabesp) Board of Directors has approved the assets purchase proposal involving the transfer of water and sewage services of the Municipality of Sao Bernardo do Campo.
The asset transfer to Sabesp, for the amount estimated in the Economic-Financial Valuation Report, includes the liquidation of the water wholesale supply accumulated debt.
Transaction terms were the following:
I - All assets and services related to water and sewage services of the Municipality of Sao Bernardo do Campo are being transferred to Sabesp.
II - The transaction value, estimated in the Economic-Financial Valuation Report, dated as of Dec. 8, 2003, prepared by the specialists appointed in the Company's Extraordinary Shareholders' Meeting held on Oct. 28, 2003, is R$ 415,470,932.00.
III - For the purpose of the current transaction, the value of the water wholesale supply debt was estimated based on the debt principal amount, monetarily adjusted up to Nov. 30, 2003, added to projected amounts to be received and billed up to Dec. 31, 2003, totaling R$ 265,431,939.41.
IV - The difference between the amount estimated in the Economic-Financial Valuation Report and the total debt amount, of R$ 150,038,992.59 will be paid in cash to the Municipality of Sao Bernardo do Campo as follows:
* 33% (thirty-three per cent) of the total up to 12/30/2003;
* 16% (sixteen per cent) of the total up to 01/30/2004;
* 10% (ten per cent) of the total up to 02/28/2004;
* 32.5% (thirty-two point five per cent) of the total divided in 5 (five) equal and successive installments, being 03/30/2004 the due date for the first installment; and
* 8.5% (eight point five per cent) of the total divided into 4 (four) equal and successive installments, being 08/30/2004 the due date for the first installment.
Sabesp will start operating sewage and water services of the Municipality of Sao Bernardo do Campo on Jan. 5, 2004.
For additional information, please contact Helmut Bossert (tel.: 5511 3388-8664 and e-mail: [email protected]) or Marisa Guimaraes (tel.: 5511 3388-9135 and e-mail: [email protected]) at Sabesp Investor Relations.
