, a subsidiary of
Public Service Enterprise Group
, said it agreed to sell 32% interest in
, a Brazilian electric distribution company to
Companhia Paulista de Forcae Luz
Sale proceeds are expected to be about $185 million in cash and will result in an after-tax loss of about $170 million which will be recorded in the second quarter. The loss primarily relates to the devaluation of the Brazilian real since Global acquired its interests in RGE in 1997.
The sale is expected to close in the second quarter. CPFL owns the balance stake in RGE.
"This sale is consistent with Global's strategy to sell assets and reduce foreign risk exposure, where prudent," said PSEG Global.
This is PSEG Global's second major asset sale announced recently. In January, it entered into an agreement for the sale of its ownership interests in its two electric generating facilities in Poland, Elcho and Skawina to
, a power company opertating in Central and Eastern Europe.
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