America Movil (AM) has entered into an agreement to acquire 100% of Nextel Telecomunicacoes (Nextel Brazil) from its co-owners, NII Holdings (70%) and AI Brazil Holdings (30%). The completion of the acquisition is subject to certain customary closing conditions, including regulatory approval from the National Telecommunications Agency (Agencia Nacional de Telecomunicacoes, Anatel) and the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE).
Under the terms of the purchase agreement, which has been unanimously approved by NII’s Board of Directors, AM will pay an aggregate purchase price of USD905 million less net debt and subject to certain adjustments at closing, including reimbursement for CAPEX and working capital investments from 1 March 2019 to the transaction’s closing.
With this takeover, AM’s subsidiary Claro Brasil will seek to consolidate its position in the mobile sector by strengthening its mobile network capacity, spectrum portfolio, subscriber base, coverage and service quality – particularly in the cities of Sao Paulo and Rio de Janeiro.
Meanwhile, NII’s Board of Directors has also approved – and will submit to stockholders for approval – a plan to dissolve and wind up NII after the closing of the transaction. TeleGeography notes that Nextel Brazil is the last remaining NII subsidiary, following the sales of its cellular businesses in Peru, Chile, Mexico and Argentina between 2013 and 2016.