SAO PAULO, July 25, 2019 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Sabesp" or "Company"), in compliance with article 157, paragraph 4 of the Law 6,404/76 and with the provisions of the CVM Instruction 358/02, with reference to the news article disclosed today, July 25, 2019, in the newspaper "Folha de S. Paulo" entitled "To assume sanitation service in Santo André, Sabesp will suspend the municipality's debt of R$ 3.4 billion" ("Para assumir saneamento em Santo André, Sabesp suspenderá dívida de R$ 3.4 bi"), hereby informs its shareholders and the market in general, the following:
In continuity to the Notices to the Market disclosed on March 20, May 7, and June 11, 2019, the Company and the municipality of Santo André are in advanced negotiations stage for the execution of a contract through which Sabesp will assume the water supply and sewage service in the municipality for the period of 40 years and will settle the municipality's debt with the Company.
However, to date, the agreement has not yet been concluded between the parties
and therefore its final terms formalized.
The Company will keep the market informed of any developments related to the subject matter of this Material Fact.