Argentine media group Grupo Clarin (BCBA:GCLA) has acquired a 49% equity interest in Nextel Argentina from NII Holdings (NASDAQ:NIHD), the companies announced.
Argentine media group Grupo Clarin (BCBA:GCLA) has acquired a 49% equity interest in Nextel Argentina from NII Holdings (NASDAQ:NIHD), the companies announced.
If local regulators approve the deal, the buyer will have the option to buy the remaining 51%. Grupo Clarin has already paid US$159m of the total US$178m consideration, and must pay the balance within 30 days.
NII Holdings, which recently emerged from bankruptcy protection, said it would use the proceeds to shore up its Brazilian operations – themselves the subject of reported takeover interest.
The deal “creates a promising path for the future of Nextel Argentina and its employees to compete effectively in the mobile market in Argentina,” said NII CEO Steve Shindler. “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.
NII Holdings was advised by Jones Day.