By Kristin Jones 
 

Latin American wireless operator NII Holdings Inc. (NIHD) has agreed to sell its Peruvian operations to Empresa Nacional de Telecomunicaciones S.A. (ENTEL.SN) for around $400 million as it narrows its focus to Mexico and Brazil.

Shares rose 7.9% in after-hours trading to $4.90. The stock is down 36% since the start of the year.

The deal, which is being structured as a purchase of the shares of NII's subsidiary Nextel del Peru S.A., is expected to close in the second half of 2013.

NII said it will use the proceeds to invest in its next-generation networks in Mexico and Brazil, its largest markets. The company, which provides wireless service under the Nextel brand, has previously said that it planned to focus on improving results in these two core markets. It also has operations in Chile and Argentina.

The company said in February that it swung to a fourth-quarter loss, as it reported lower revenue and logged large impairment and restructuring charges.

Write to Kristin Jones at kristin.jones@dowjones.com

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