SAO PAULO, Feb 21 (Reuters) - Brazil's largest power distribution company Eletropaulo is nearing a deal to settle a debt of 2 billion reais ($614.8 million) with Centrais Elétricas Brasileiras SA, a source familiar with the negotiation told Reuters on Wednesday.
Eletropaulo, in which U.S. power firm AES Corp has a stake of 16.8 percent, weighs a proposal presented by Eletrobras for an immediate cash payment of 700 million reais, plus 10 annual installments of 75 million reais each, said the source, who requested anonymity because talks are private.
A deal would clear the path for AES to sell its stake in Eletropaulo, the source said, what could be done through a share offering.
Eletropaulo and Eletrobras declined to comment.
$1 = 3.2531 reais Reporting by Marcelo Teixeira; Editing by Lisa Shumaker