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Additionally, the government said the strategic shareholder will be responsible for compensating the state if the price of the winning book is below what was offered per share in the anchor-investor selection phase of the sale.
Sao Paulo announced the general outline of two-stage offer in April. How the book-building process would be carried out was a big question for investors, as the government had signaled it was studying a model in which investors could have to follow the same price as the strategic shareholder in the broad offer.
The reference shareholder will have 15% of the shares and the government intends to reduce its stake to about 20% from its current 50.3% once the privatization is finalized.