NII announces strategic alliance with Argentina's Grupo Clarin

NII Holdings has announced a strategic alliance with Grupo Clarin in Argentina.

Grupo Clarin acquired a 49 percent equity interest in Nextel Argentina for total consideration of $178 million, of which $159 million was paid up front, with the remaining amount due within 30 days. The company still has the option to acquire the remaining 51 percent.

The net proceeds received from the transaction will be used to provide additional liquidity to support NII's operations in Brazil.

"The transaction with Grupo Clarin creates a promising path for the future of Nextel Argentina and its employees to compete effectively in the mobile market in Argentina," NII CEO Steve Shindler said. "At the same time, it is consistent with our strategy to concentrate our resources on our operations in Brazil and provides incremental capital to improve our liquidity to support our business there."

Nextel Argentina will continue to be controlled and operated by NII, pending the receipt of the necessary regulatory approvals.