Minority shareholder challenges EMAE-Sabesp merger valuation at CVM

A minority shareholder has challenged the EMAE-Sabesp merger valuation at Brazil's CVM, alleging procedural irregularities and creating uncertainty regarding the final share exchange ratio and potential regulatory delays. Concurrently, Brazilian firms are increasingly relying on minority stake sales and shareholder capital injections for liquidity due to high interest rates and a sluggish public equity market, with a 26% increase in minority investment volume above the decade average. The Brazilian consortium market also expanded by 15% in 2025, driven by high-income investors.