By Kristin Jones
Latin American wireless operator NII Holdings Inc. (NIHD) has
agreed to sell its Peruvian operations to Empresa Nacional de
Telecomunicaciones S.A. (ENTEL.SN) for around $400 million as it
narrows its focus to Mexico and Brazil.
Shares rose 7.9% in after-hours trading to $4.90. The stock is
down 36% since the start of the year.
The deal, which is being structured as a purchase of the shares
of NII's subsidiary Nextel del Peru S.A., is expected to close in
the second half of 2013.
NII said it will use the proceeds to invest in its
next-generation networks in Mexico and Brazil, its largest markets.
The company, which provides wireless service under the Nextel
brand, has previously said that it planned to focus on improving
results in these two core markets. It also has operations in Chile
and Argentina.
The company said in February that it swung to a fourth-quarter
loss, as it reported lower revenue and logged large impairment and
restructuring charges.
Write to Kristin Jones at kristin.jones@dowjones.com
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