AES Corp. has completed the sale of its 17% stake in Brazilian power distribution company Eletropaulo Metropolitana Eletricidade de São Paulo SA to Enel Brasil Investimentos Sudeste SA.

AES plans to use $310 million in projected net proceeds to reduce parent debt. The sale "represents the final chapter of our strategic decision to exit from the distribution business in Brazil," said AES President and CEO Andrés Gluski.

The Enel SpA subsidiary recently scooped up a 73.4% stake in Eletropaulo for approximately 5.55 billion Brazilian reais, or roughly €1.27 billion.

As of June 13, US$1 was equivalent to 3.71 Brazilian reais.