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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.
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(END) Dow Jones Newswires
March 18, 2019 06:38 ET (10:38 GMT)
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