SABESP - MATERIAL FACT

SÃO PAULO, July 31, 2019 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp"), in compliance with the provisions of Article 157, Paragraph 4 of Law 6,404/76 and the provisions of CVM Instruction Nº 358/02, informs to its shareholders and to the market in general, in continuity of the Notices to the Market disclosed on March 20, May 7, and June 11, 2019, and to the Material Fact disclosed on July 25, 2019, that was signed on this date i) the Contract for the Provision of Public Services between the State of São Paulo, the Municipality of Santo André and Sabesp ("Contract") and ii) the Term of Adjustment for the Payment and Receipt of the Debt between the Municipal Environmental Sanitation Service of Santo André (Serviço Municipal de Saneamento Ambiental de Santo André or "Semasa"), the Municipality of Santo André and Sabesp ("Term of Adjustment").

The main purposes of the Term of Adjustment and of the Contract are the transfer to Sabesp of the water supply and sewage services in the Municipality ("Services"), for a period of 40 years, and the suspension by Sabesp of the judicial collection of Semasa's debt, with an undisputed face value of R$ 3.5 billion ("Debt") as of June, 2019.

Through the Term of Adjustment and by simultaneously signing the Contract, Sabesp, the Municipality of Santo André and Semasa agreed that the payment of the Debt will be made through the transfer of the Services in the Municipality to Sabesp for 40 years. Through this operation, the assets constituted by Semasa and connected to the services are also transferred to Sabesp, which will directly exploit the said services.

You can access the Material Fact at www.sabesp.com.br/investidores/

IR Contacts:
Mario Arruda Sampaio: (55 11) 3388-8664 (maasampaio@sabesp.com.br)
Angela Beatriz Airoldi: (55 11) 3388-8793 (abairoldi@sabesp.com.br)

SOURCE Sabesp