NII Holdings Announces Sale of Nextel Peru
-- NII agrees to sell Nextel Peru to Entel for $400 million
-- Transaction is consistent with NII's strategy to focus on its largest
markets, Mexico and Brazil
-- Additional capital further improves NII's liquidity position as it focuses
its investments on the expansion of its new next generation platform in its
RESTON, Va., April 4, 2013
RESTON, Va., April 4, 2013 /PRNewswire/ --NII Holdings, Inc. (NASDAQ: NIHD)
today announced that it has agreed to sell its Peruvian operations to Empresa
Nacional de Telecomunicaciones S.A. (Bolsa de Comercio de Santiago: ENTEL) for
approximately $400 million.
The transaction, which is structured as a purchase of the shares of NII's
indirect subsidiary, Nextel del PeruS.A. ("Nextel Peru"), is being entered
into as part of NII's announced strategy to focus its capital and other
resources in Mexico and Brazil, its two largest markets. The proceeds
received from this sale will provide additional liquidity as the Company
continues to invest in the deployment of its next generation networks in
Mexico and Brazil. NII's next generation networks will enable the Company to
provide the highest quality wireless experience to high value customers in
"The sale of Nextel Peru is an important step in the evolution of our business
and aligns with our strategic goal of increasing value for stockholders
through focused investments on our new next generation network deployments,"
said Steve Shindler, NII's chairman and interim chief executive officer. "The
proceeds that we generate through this sale allow us to prioritize investments
in our largest markets that offer the greatest opportunity for strong,
"Nextel Peru has been an integral part of NII for fifteen years, and led the
way on a number of key initiatives, including being the first of our markets
to implement our new billing system and the first to deploy and launch our new
next generation network and high performance push-to-talk service," added
Shindler. "We are grateful to all of our Peru employees and expect that
Nextel Peru's outstanding management team will continue to thrive under
The closing of the transaction is subject to certain conditions and is
expected to occur in the second half of 2013.
The Company was advised by Deutsche Bank Securities Inc. and Jones Day.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a
provider of differentiated mobile communication services for businesses and
high value consumers in Latin America. NII, operating under the Nextel brand
in Brazil, Mexico, Argentina, Peru and Chile, offers fully integrated wireless
communications tools with digital cellular voice services, data services,
wireless Internet access and Nextel Direct Connect^® and International Direct
Connect^SM, a digital two-way radio. NII is a Fortune 500 and Barron's 500
company, and has also been named one of the best places to work among
multinationals in Latin America by the Great Place to Work^® Institute. The
company trades on the NASDAQ market under the symbol NIHD. Visit the company's
website at www.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect and International Direct
Connect are trademarks and/or service marks of Nextel Communications, Inc.,
and are used by NII's subsidiaries under license in Latin America.
Visit NII's news room for news and to access our markets' news centers:
With annual revenues of US$ 3 billion, reported as of December 2012, Empresa
Nacional de Telecomunicaciones S.A. provides mobile, internet, data and IT
services, as well as local and long-distance telephony to both consumers
clients and enterprises in Chile. The Company also has operations in Peru and
is listed on the Chilean Stock Exchange (Bolsa de Comercio de Santiago) under
the ticker symbol ENTEL. For more information please visit: www.entel.cl.
Safe Harbor Statement
This release includes "forward-looking statements" regarding the proposed sale
transaction, future service offerings, business outlook and future
performance, as well as other statements that are not historical or current
facts. Forward-looking statements are qualified by the inherent risks and
uncertainties surrounding future expectations generally and may materially
differ from actual future results. Risks and uncertainties that could affect
the forward-looking statements in this release include: the failure to
successfully close the transaction contemplated by the sale purchase
agreement, including due to a failure to meet closing conditions; unexpected
costs or liabilities; the impact of more intense competitive conditions and
changes in economic conditions in the Mexican and Brazilian telecommunications
markets; the risk that our network technologies will not perform properly or
support the services our customers want or need, including the risk that
technology developments to support our services will not be timely delivered;
the risk that customers in the markets we serve will not find our services
attractive; and the additional risks and uncertainties that are described in
NII's Annual Report on Form 10-K for the fiscal year ended December 31, 2012,
as well as in other reports filed from time to time by NII Holdings with the
Securities and Exchange Commission. This press release speaks only as of its
date, and NII disclaims any duty to update the information herein, except as
required by law.
NII Holdings, Inc.
1875 Explorer Street, Suite 1000
Reston, VA. 20190
Investor Relations: Tim Perrott
Media Relations: Claudia Restrepo
SOURCE NII Holdings, Inc.
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