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Nextel Sells Peruvian Subsidiary to Chile's Entel

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Latin America's NII Holdings (Nextel) has announced a deal to sell its Peruvian operations to Chile's Entel for approximately $400 million. The deal was widely rumoured to be taking place yesterday, but only confirmed this morning.

The transaction, which is structured as a purchase of the shares of NII's indirect subsidiary, Nextel del 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 company said that the proceeds received from this sale will provide additional liquidity as the it continues to invest in the deployment of its networks in Mexico and Brazil.

"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, long-term returns."

"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 Entel's direction."

The closing of the transaction is subject to certain conditions and is expected to occur in the second half of 2013.

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Tags: nii holdings  Peru