AINMT Holdings AB is expanding its geographic footprint beyond Europe and Asia with a new investment in NII Holdings Inc.'s Nextel Holdings Sàrl, which operates mobile telco Nextel Brazil.
AINMT plans to invest $50 million for an initial 30% stake in the Brazilian mobile operator, with an option to increase its stake to a controlling 60% with an additional $150 million investment in Nextel. The second stage of the AINMT investment is conditional upon receiving certain concessions from Nextel Brazil's lenders, and it must be completed by Jan. 31, 2018.
The AINMT investment is expected to help fund growth at Nextel Brazil, including an improved network and expanded subscriber base, as well as provide Nextel with access to telecom professionals with experience in company turnarounds, NII Holdings said.
By the first closing, NII agreed to contribute all of its freely distributable cash and proceeds to Nextel Holdings from the return of NII's escrow from the sale of Nextel Mexico, except for $50 million in cash that will remain with NII. The closing is also contingent upon shareholder and regulatory approvals, as well as other customary conditions.
Jones Day and Mattos Filho advised NII. Rothschild acted as NII's exclusive financial adviser.