Enel to Sell Brazil Power Distribution Unit for $1.4 Billion (1)

Italian utility giant Enel SpA signed a deal to sell its Brazilian electricity distribution unit to Equatorial Energia SA for about 7.3 billion reais ($1.39 billion.)

Equatorial will pay about 1.6 billion reais ($307 million) cash for the unit, CELG Distribuicao SA,and assume about 5.7 billion reais in net debt, the company said in a statement. The agreement is expected to close by the end of the year.

The boards of Enel Brasil and Enel Americas are scheduled to meet Sept. 28 to approve the deal.

Shares of Equatorial Energia rallied the most intraday in 18 months, gaining ...