OREANDA-NEWS. The AES Corporation (NYSE: AES) announced today 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. (NYSE: CPL) for BRL1,698 million (equivalent to $464 million at the expected BRL/USD conversion rate of 3.66 at the time of closing), 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 sale of our distribution company, Sul, in Brazil is yet another step we are taking to optimize our portfolio for future value creation,” said Andris Gluski, AES President and Chief Executive Officer. “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.”

This sale was previously included in the Company’s 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.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 17 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 21,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2015 revenues were $15 billion and we own and manage $37 billion in total assets.

AES Brazil includes two utility businesses, Eletropaulo and Sul. Together, these businesses improve the lives of our customers in Brazil, supplying energy solutions to a region of high demographic density that represents the largest concentration of GDP in the country.

Serving approximately 7 million customers, Eletropaulo is the largest power distributor in Brazil, according to the 2012 ranking of the Brazilian Association of the Distributors of Electric Energy (Abradee). Sul supplies electricity to 118 municipalities in the Porto Alegre metropolitan region, serving approximately 1.3 million customers.