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Cablevision exercises option to purchase remaining 51% in Argentine mobile operator, leaving NII to focus on Brazil.
NII Holdings on Thursday confirmed that it has disposed of its Nextel Argentina business in its entirety.
Via its Cablevision unit, Grupo Clarin acquired the 51% of Nextel it did not already own, as part of a deal that was announced almost six months ago.
In September last year NII Holdings brokered a US$178 million deal to sell 49% of Nextel to Grupo Clarin with an option on the remaining 51%.
Initially, Argentina’s Autoridad Federal de las Tecnologías de la Información y las Comunicaciones (AFTIC) attempted to block the deal on the grounds that it had been agreed without regulatory authorisation, but its objections were overturned.
That left the way clear for Cablevision to exercise the option to acquire the remainder of Nextel and become – directly and indirectly; its Televisión Dirigida subsidiary was also involved in the transaction – the owner of 100% of Nextel Argentina’s shares and voting rights.
In a stock exchange filing, Cablevision noted that the transaction still requires the approval of the Ente Nacional de Comunicaciones (ENACOM), the entity that is due to take over the regulatory responsibilities of telco regulator AFTIC and media watchdog the Autoridad Federal de Servicios de Comunicación Audiovisual (AFSCA). The regulatory merger has been held up by legal challenges, incidentally.
The deal leaves NII Holdings with just one mobile operation: Nextel Brasil.
"This transaction is consistent with our strategy to concentrate our resources on our operations in Brazil and improve our liquidity position," said Steve Shindler, chief executive at NII, in a separate statement.
"We are proud of the success that our team in Argentina has achieved as a part of our company for the past 18 years, and we are grateful to all of our employees there for their dedication and service," Shindler added.
