RESTON, Va., Sept. 14, 2015 /PRNewswire/ -- NII Holdings,
Inc. (NASDAQ: NIHD) today announced a strategic alliance with
Grupo Clarin in Argentina. In connection with the
transaction, Grupo Clarin acquired a
49% equity interest in Nextel Argentina and an option to acquire
the remaining 51% equity interest in Nextel Argentina upon receipt
of approvals from the regulatory authorities in Argentina for total consideration of
$178 million, of which $159 million was paid up front -- with the
remaining amount due within 30 days. The net proceeds
received from the transaction will be used to provide additional
liquidity to support NII's operations in Brazil.
"The transaction with Grupo
Clarin creates a promising path for the future of Nextel
Argentina and its employees to compete effectively in the mobile
market in Argentina," said
Steve Shindler, NII's chief
executive officer. "At the same time, it is consistent with our
strategy to concentrate our resources on our operations in
Brazil and provides incremental
capital to improve our liquidity to support our business there."
Nextel Argentina will continue to be controlled and operated by
NII pending the receipt of the necessary regulatory approvals.
NII Holdings was advised by Jones
Day as legal advisor.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in
Reston, VA, offers differentiated
mobile communications service including fully integrated wireless
voice and data services under the Nextel brand in Brazil and Argentina. Visit NII's website at
www.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect are
trademarks and/or service marks of Nextel Communications,
Inc.
Visit NII's news room for news and to access our markets' news
centers: nii.com/newsroom.
About Grupo Clarin
Grupo Clarín is the largest media company in Argentina and a leading company in the cable
television and Internet access, printing and publishing, and
broadcasting and programming markets. Its cable television network
is one of the largest in Latin
America in terms of subscribers, and is a leading broadband
provider in Argentina. Its
newspaper –Diario Clarín– is one of the highest circulation
newspapers in Latin America. Grupo
Clarín is the largest producer of media content in Argentina, including news, sports and
entertainment and reaches substantially all segments of the
Argentine population in terms of wealth, geography and age.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995. This news release includes
"forward-looking statements" within the meaning of the securities
laws. The statements in this news release regarding the business
and economic outlook, future performance and forward-looking
guidance, as well as other statements that are not historical
facts, are forward-looking statements. Forward-looking
statements are estimates and projections reflecting management's
judgment based on currently available information and involve a
number of risks and uncertainties that could cause actual results
to differ materially from those suggested by the forward-looking
statements. With respect to these forward-looking statements,
management has made assumptions regarding, among other things,
NII's ability to complete the sale of Nextel Argentina, including
receiving the required regulatory approval for the sale, NII's
ability to meet its business plans, customer growth and retention,
pricing, network usage, operating costs, the timing of various
events, the economic and regulatory environment and the foreign
currency exchange rates that will prevail during 2015. Future
performance cannot be assured and actual results may differ
materially from those in the forward-looking statements. Some
factors that could cause actual results to differ include the risks
and uncertainties relating to: the completion of the sale of Nextel
Argentina, the impact of liquidity constraints, the impact of more
intense competitive conditions and changes in economic conditions
in Argentina and Brazil, the performance of the NII's networks,
NII's ability to provide services that customers want or need, the
ability of NII to continue as a going concern, NII's ability to
execute its business plan, and the additional risks and
uncertainties that are described in NII's Quarterly Report on
Form 10-Q for the fiscal quarter ended June
30, 2015, as well as in other reports filed from time to
time by NII 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.
Media Contacts:
NII Holdings, Inc.
1875 Explorer Street, Suite 800
Reston, VA. 20190
(703) 390-5100
www.nii.com
Investor and Media Relations:
Tahmin Clarke
(703) 390-7174
tahmin.clarke@nii.com
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SOURCE NII Holdings, Inc.