Scandinavian Group buys control of Nextel Brazil for $ $200,000,000

SAO PAULO-the NII Holdings and the Scandinavian AINMT Group Holdings released on Tuesday agreed that the Norwegian Ice carrier can invest up to $ $200,000,000 in brazilian Nextel, taking control of the brazilian mobile telecommunications company.
According to the joint statement from the companies, the AINMT will invest initially US $50,000,000 for a slice of 30% on Nextel Holdings, a wholly owned subsidiary of NII, current Nextel Brazil''s controller. Later, you will have the option of investing $ $150,000,000.
"If this option is exercised, the total investment of AINMT, $ $200,000,000, will result in a majority control equivalent to 60% of the share capital of the company," says the statement. The NII will contribute capital and stop 40% share in the company if the AINMT to exercise your option.
The option must be exercised until November 15. This second step of the operation must be completed by 31 January 2018 and NII Holdings expects the operation to be completed during the first quarter of 2018.
If the AINMT perform the additional investment of $ $150,000,000, "Nextel will have greater financial strength to follow your newly developed commercial expansion strategy that includes continued investment in key markets for Nextel Brazil focusing on the expansion of the client base".
According to the statement, the transaction will provide the Nextel a significant increase of capital to revitalize business and allow Nextel follow a growth strategy that would not be possible for the NII finance alone.
The completion of the transaction is subject to an addition of Nextel Brazil''s debts and to release and substitution of certain guarantees, in addition to other conditions of closing, including regulatory and antitrust approvals, shareholder approval of the NII and third-party approvals.
The team of Bradesco BBI said in a note to clients that the sale of Nextel to the AINMT group is unexpected, adding that saw the three main market participants as key buyers from Nextel, especially TIM.
Analysts Fred Mendes and Tales of supply to Freire, US $200,000,000 should help, but it won''t solve the challenges of the company''s liquidity, which may need another injection of capital in the future.
"It is not yet clear what is the main AINMT''s strategy for Brazil. For now, we believe this news is relatively negative for Vivo, TIM, and of course, since the three companies were gaining market share at Nextel, which failed to invest significantly in its operations, "said Bradesco BBI.