AES Agrees To Sell AES Sul In Brazil To CPFL Energia For $464 Mln - Quick Facts

(RTTNews) - Power company AES Corp. (AES) announced Thursday that it has entered into an agreement to sell its 100% equity interest in AES Sul, one of its utilities in Brazil, to CPFL Energia S.A. (CPL). The deal price is 1.698 billion Brazilian Real, equivalent to $464 million, subject to closing price adjustments.

The transaction is expected to close in the second half of 2016, subject to approval by CPFL Energia's shareholders and customary regulatory approvals.

The company said the sale was previously included in its 2016 guidance and 2017-2018 expectations. Additionally, the transaction will remove a total of $335 million in non-recourse debt on AES' Balance Sheet as of March 31, 2016.

Andrés Gluski, AES President and Chief Executive Officer, said, "The sale of our distribution company, Sul, in Brazil is yet another step we are taking to optimize our portfolio for future value creation. We are proud of the work we have done at Sul over the past 19 years to improve safety, systems and operations, but believe that today we can best serve our shareholders by re-deploying our capital in other businesses and to de-risk the Company."