NII Holdings to Sell Interest in Nextel Brazil, Dissolve Company
March 18 2019 - 6:53AM
Dow Jones News
By Chris Wack
NII Holdings Inc. (NIHD) said Monday that it has agreed to sell
its 70% interest in its Nextel Brazil to America Movil S.A.B. de
C.V. (AMON) through the sale of one of NII's Luxembourg-based
subsidiaries.
The Reston, Va.-based company said in a release that the sale
represents the disposition of its sole remaining operating asset.
The company's board approved a plan to dissolve and wind up NII
after the closing of the transaction, upon shareholder
approval.
AI Brazil Holdings BV has also agreed to sell its 30% interest
in Nextel Brazil so that America Movil will be the sole owner of
Nextel Brazil.
Under the terms of the purchase agreement, America Movil will
acquire all of Nextel Brazil for $905 million. NII will receive 70%
of the final net proceeds after deducting a $2 million preferred
share return due to AI Brazil.
America Movil will place $30 million of NII's portion of the net
proceeds into an 18-month escrow account to secure NII's
indemnification obligations under the purchase agreement.
NII and AI Brazil have also agreed that if the transaction to
sell Nextel Brazil is consummated, AI Brazil will be entitled to
the first $10 million and 6% of additional amounts recovered from
the Nextel Mexico escrow, as a resolution to an outstanding
disagreement regarding the characterization of any contributions to
Nextel Brazil from future proceeds released from the Nextel Mexico
escrow account.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
March 18, 2019 06:38 ET (10:38 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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