NII Holdings has announced a deal to sell nearly half of its Argentinean subsidiary to a local investor.
Under the terms of the deal, Grupo Clarin acquired a 49% equity interest in Nextel Argentina and an option to acquire the remaining 51% equity interest in
Nextel Argentina upon receipt of approvals from the regulatory authorities in
Argentina for total consideration of $178 million, of which $159 million was
paid up front -- with the remaining amount due within 30 days.
The net proceeds received from the transaction will be used to provide
additional liquidity to support NII's operations in Brazil.
"The transaction with Grupo Clarin creates a promising path for the
future of Nextel Argentina and its employees to compete effectively in the
mobile market in Argentina," said Steve Shindler, NII's chief executive
officer. "At the same time, it is consistent with our strategy to
concentrate our resources on our operations in Brazil and provides incremental
capital to improve our liquidity to support our business there."
Nextel Argentina will continue to be controlled and operated by NII pending
the receipt of the necessary regulatory approvals.