Norwegian Operator Buys 30% Stake in Nextel Brazil
Monday, July 24, 2017 | Comments

NII Holdings and AINMT Holdings, an international telecommunications company and parent of Norwegian operator ice, announced that AINMT completed its first investment of $50 million for a 30 percent stake in Brazilian mobile telecommunications company Nextel Brazil.

As previously announced, AINMT has an option, exercisable by Nov. 15, to invest an additional $150 million in Nextel Holdings, which owns Nextel Brazil. If this option is exercised, AINMT's total $200 million equity investment would result in a 60 percent controlling stake in the company. If AINMT exercises its option, the closing of the second AINMT investment is subject to receipt of certain third-party consents and other conditions, including amendment of Nextel Brazil's credit facilities and release and substitution of certain existing guarantees, receipt of regulatory and antitrust approvals, and approval from NII's stockholders. If AINMT elects to exercise its option, NII will ask its stockholders to vote in favor of the transaction.

If AINMT exercises its option, the closing of the second AINMT investment must be completed by Jan. 31, 2018. NII anticipates — assuming AINMT's exercise of the option and receipt of the necessary consents and satisfaction of conditions — that the second AINMT investment will close during the first quarter of 2018. At that time, NII is expected to hold a 40 percent stake in the company, and Nextel Brazil would have an enhanced financial profile to pursue a newly developed commercial strategy that contemplates continued investments in Nextel Brazil's key markets with a focus on expanding its subscriber base.

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