Brazilian state-run oil company Petrobras (PETR4.SA) on Tuesday started the non-binding phase of the sale of its 18.8% stake in electricity distributor UEG Araucaria SA, it said in a securities filing.

UEG Araucaria, a joint venture between Petrobras and Grupo Copel (CPLE6.SA), owns a natural gas power plant in Brazil’s southern Parana state and has installed capacity of 484 Megawatts, according to Petrobras.

The sale is part of Petrobras’ ongoing divestiture process as it focuses on more profitable assets.

“This operation is aligned with the strategy of portfolio optimization and improved allocation of the company’s capital, aiming to maximize value and provide a greater return to society,” Petrobras said in a statement.
Source: Reuters (Reporting by Peter Frontini; Editing by Leslie Adler and Sam Holmes)