Milestones
1963
In 1963, the State of Minas Gerais established COMAG (Companhia Mineira de Água e Esgoto) to provide water supply and sewage services to municipalities across the state.
Following the establishment of the Sanitation Financing System in 1968 and the National Sanitation Plan (PLANASA) in 1971, state-owned sanitation companies were created throughout Brazil. In this context, the Municipal Department of Water and Sewage (DEMAE), which was responsible for sanitation services in Belo Horizonte, was incorporated into COMAG. As municipal systems were incorporated and operations expanded, COMAG adopted the corporate name Companhia de Saneamento de Minas Gerais – COPASA MG in 1974.
2000
An amendment to State Law No. 6,084/1973, which established the Company, expanded COPASA MG’s corporate purpose to include the collection, recycling, treatment and final disposal of urban, household and industrial waste. The amendment also authorized partnerships with Brazilian and international companies and the execution of agreements or contracts with federal, state and municipal entities and their indirect administration bodies.
2003
COPASA MG obtained registration as a publicly held company with the Brazilian Securities and Exchange Commission (CVM), paving the way for its subsequent access to the capital markets.
2006
COPASA MG completed its initial public offering (IPO) and was listed directly on B3’s Novo Mercado segment, which requires issuers to comply with enhanced corporate governance and transparency standards.
2007
Three wholly owned subsidiaries were established: COPANOR (COPASA Serviços de Saneamento Integrado do Norte e Nordeste de Minas Gerais), COPASA Águas Minerais de Minas and COPASA Serviços de Irrigação. In the same year, Federal Law No. 11,445/2007, known as the Basic Sanitation Law, introduced new rules and guidelines governing the regulation, oversight, planning and provision of sanitation services.
2008
A secondary public offering was completed, through which the Municipality of Belo Horizonte, then the Company’s second-largest shareholder, sold its entire equity interest. The State of Minas Gerais sold a portion of its shares while remaining the controlling shareholder.
2009
The Regulatory Agency for Water Supply and Sewage Services of the State of Minas Gerais (Arsae-MG) was established pursuant to State Law No. 18,309/2009 to regulate and oversee sanitation services and establish the applicable tariff framework.
2011
Arsae-MG Resolution No. 03/2011 established the methodology for calculating annual tariff adjustments for public water supply and sewage services subject to regulation. The resolution was revoked in June 2021.
2015
A new water intake system on the Paraopeba River was implemented to enhance water security in the Belo Horizonte Metropolitan Area. COPASA MG also completed an organizational restructuring that reduced the number of Executive Departments, commissioned positions and employees.
2016
COPASA Serviços de Irrigação and COPASA Águas Minerais de Minas discontinued operations, as their corporate purposes were no longer aligned with the Company’s strategy. COPASA MG also implemented a collective decision-making model across the organization to strengthen cost management.
2017
Arsae-MG concluded COPASA MG’s first Periodic Tariff Review. In the same year, the Company entered into its first concession agreement for landfill operations with the Municipality of Varginha, covering the receipt, treatment and final disposal of waste.
2018
COPASA MG enhanced its corporate governance framework by establishing the Compliance and Risk Department, implementing the Statutory Audit Committee and reviewing or adopting corporate governance policies. The Company also published its Annual Internal Audit Activities Report (RAINT) and Annual Public Policy and Corporate Governance Letter for the first time.
2019
COPASA MG undertook an organizational restructuring and reviewed its strategic planning to prepare for developments in the Brazilian sanitation sector. The maximum number of Executive Departments was reduced from eight to five, the number of organizational units was reduced by nearly 20%, and positions of trust were reduced by 17%. The structure dedicated to relationships with customers and granting authorities was strengthened, together with processes for identifying and developing business opportunities.
Consistent with its Integrity Program, the Company adopted or implemented policies on Internal Controls, Gifts and Hospitality, Conflicts of Interest and Corporate Governance, and revised its Related-Party Transactions Policy.
2020
In response to the COVID-19 pandemic, COPASA MG adopted emergency measures and established a Multidisciplinary COVID-19 Prevention Committee to safeguard employees, ensure the continuity and quality of services and maintain customer relationships. Measures included more flexible commercial practices, the temporary suspension of service disconnections and of interest and penalty charges for customers in the Residential Social category, and the temporary closure of customer service centers.
In July 2020, Federal Law No. 14,026/2020 established the New Legal Framework for Basic Sanitation. The legislation introduced structural changes to the sector and set universalization targets to be achieved by December 31, 2033, including access to drinking water for 99% of the population and sewage collection and treatment for 90% of the population. It also established objectives related to service continuity, quality, efficiency, water loss reduction and the rational use of natural resources. The law assigned the National Water and Basic Sanitation Agency (ANA) responsibility for issuing reference standards for the regulation of public sanitation services. In May 2020, Arsae-MG also initiated the procedures for COPASA MG’s second Periodic Tariff Review.
COPASA MG also updated its strategic positioning through a participatory process involving employees, incorporating transformation, innovation, customer focus and business sustainability into its organizational identity. The Company joined the United Nations Global Compact and the 2030 Challenge Network in partnership with the Global Compact Network Brazil.
In the capital markets, a three-for-one stock split of the Company’s common shares was approved to increase liquidity, broaden the shareholder base and facilitate access for a wider range of investors. COPASA MG continued to enhance its governance framework by adopting and reviewing policies and by providing assessments and training for members of the Board of Directors, Fiscal Council, Executive Board and Statutory Audit Committee.
2021
COPASA MG implemented a Voluntary Separation Program (VSP), which was joined by approximately 1,100 employees.
Arsae-MG concluded the Company’s second Periodic Tariff Review, establishing the methodology for annual tariff adjustments during the four-year tariff cycle.
For the first time in the Company’s history, annual investments reached BRL 1.0 billion.
2022
COPASA MG maintained the execution of its investment plan as a strategic priority, with annual investments reaching a new record of BRL 1.3 billion.
The Company continued to pursue cost-efficiency initiatives, including its first procurement of electricity in the free contracting environment.
In November 2022, Arsae-MG announced the tariff adjustment to be applied by COPASA MG from January 1, 2023, resulting in an Average Tariff Effect of 15.7%.
2023
COPASA MG implemented another Voluntary Separation Program (VSP), which was joined by approximately 730 employees.
EBITDA increased by 35.0% and net income increased by 63.6%, reaching approximately BRL 2.7 billion and BRL 1.4 billion, respectively.
The delinquency ratio decreased to 2.97% in December 2023, the lowest level observed in seven years.
Investments reached BRL 1.6 billion, setting a new historical record.
Water service coverage remained above 99%, exceeding the target established by the New Legal Framework for Basic Sanitation. Coverage of sewage collection and treatment reached 75%, an increase of 2.9 percentage points from 72% in 2022.
COPASA MG was selected for B3’s 2024 Corporate Sustainability Index (ISE B3) portfolio, reflecting the Company’s ESG strategy and commitment to sustainability.
2024
COPASA MG completed a rebranding process aligned with its positioning as a modern and competitive sanitation company. The new visual identity reflected the Company’s transformation and innovation agenda and reinforced its purpose of creating value for society through reliable, high-quality services.
The Company redesigned its CAPEX management model to improve planning, governance and execution.
On July 30, COPASA MG launched the Competitive Management Strategic Project, initially focused on Organization and People, CAPEX Management and the application of advanced analytics to fraud management.
COPASA MG established the wholly owned subsidiary COPASA Patos Saneamento S.A. (COPASA Patos), whose corporate purpose is to plan, implement, expand, upgrade and operate public basic sanitation services in the Municipality of Patos de Minas.
The Company also joined B3’s Corporate Sustainability Index (ISE B3).
The State of Minas Gerais was notified of the filing, with the Legislative Assembly of the State of Minas Gerais (“ALMG”), of a bill providing for measures related to the potential privatization of the Company (Bill No. 4,380/2025).
2025
In April 2025, Fitch Ratings upgraded COPASA MG’s National Long-Term Rating to AAA(bra), with a Stable Outlook. In July 2025, Moody’s Local Brasil affirmed the Company’s AAA.br rating, also with a Stable Outlook.
The Competitive Management Strategic Project continued to advance through initiatives aimed at enhancing corporate processes, modernizing management models and strengthening operating governance.
The State of Minas Gerais established strategic guidelines for the Company’s management to undertake preparatory measures and technical studies related to a potential privatization, including preliminary feasibility analyses, transaction structuring studies, economic and financial assessments and the potential engagement of specialized technical advisers, while Bill No. 4,380/2025 remained under consideration by the Legislative Assembly of the State of Minas Gerais (ALMG).
On December 17, 2025, ALMG approved Bill No. 4,380/2025. Following its enactment by the Governor of the State of Minas Gerais, the bill became State Law No. 25,664, dated December 22, 2025, authorizing the State Executive Branch to take measures to privatize COPASA MG.
Arsae-MG concluded COPASA MG’s third Periodic Tariff Review, covering a four-year tariff cycle. The resulting Average Tariff Effect for 2026 was 6.56%, effective January 22, 2026.
COPASA MG also obtained ISO 37301 certification for its Compliance Management System.
2026
Through a material fact published on January 28, 2026, COPASA MG announced that its privatization would be structured through a secondary public offering of the Company’s shares, with no primary tranche, under the automatic registration procedure provided for in the applicable regulations.
On February 23, 2026, an Extraordinary Shareholders’ Meeting approved a new version of the Company’s Bylaws, subject to the settlement of the offering. Among other amendments, the revised Bylaws created a special class consisting of one preferred share held by the State of Minas Gerais (the golden share). The share carries no voting rights, except for veto rights over resolutions concerning changes to the Company’s name and registered office and changes to the voting-rights cap applicable to shareholders or groups of shareholders, as provided in the Bylaws.
Through a material fact published march 26, COPASA MG executed an amendment to its cooperation agreement with the Municipality of Belo Horizonte, extending its term through February 2073. A concession agreement applicable upon the Company’s privatization was also executed, supporting the continuity of service provision in the municipality under the new ownership structure.
On June 16, 2026, the secondary public offering of 171,113,881 common shares issued by COPASA MG and held by the State of Minas Gerais was completed at a price of BRL 49.03 per share. (Announcement).
On June 18, 2026, the Shareholders’ Agreement entered into in connection with the Company’s new ownership structure was disclosed.
During the period, COPASA MG advanced the management of its concession portfolio through initiatives led by a dedicated governance structure. Contract renewals increased the average remaining concession term to approximately 29 years, strengthening long-term visibility and the sustainability of the Company’s operations. Based on information available as of August 10, the new agreements expressly incorporated regulatory provisions addressing universalization targets, performance indicators, tariff review mechanisms, preservation of the economic and financial balance of the concessions, recognition of efficient costs and prudent investments, and the sharing of productivity gains. The applicable regulatory terms are set out in the respective agreements, enhancing transparency, legal certainty and predictability for investment execution.