The mobile operators are currently evaluating Nextel Brazil financial condition
Brazilian mobile operators Claro and TIM, as well of a number of foreign investment companies, are among the firms interested in acquiring Nextel Brazil, which if fully owned by NII Holdings, local paper Folha de Sao Paulo reported.
According to the report, Nextel Brazil is on sale for $300 million, though any future buyer also needs to assume $600 million in debt. Claro, TIM and the investment companies are currently in the process of reviewing financial information provided by Nextel Brazil regarding a potential offer. Other operators such as Oi and Sky have also been invited to analyze Nextel’s information, but are reportedly not currently participating in the process.
According to the report, Nextel Brazil’s CEO Francisco Valim said the company is not for sale. The executive added the management’s focus is to cut costs, optimize infrastructure and make new investments in the local operation. However, the paper confirmed firms are interested in the acquisition, citing unnamed sources.
Valim confirmed Claro and TIM are analyzing certain information provided by Nextel in order to evaluate potential network sharing agreements, according to the report.
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Nextel is the fifth largest mobile operator in Brazil. The company ended the third quarter of 2015 with 4.46 million subscribers, posting 27,000 net additions during the period, according to NII’s latest financial report. The telco had a market share of less than 1% at the end of November, according to telecom services regulator Anatel.
NII holdings sold its operations in Mexico and Argentina in 2015, while the firm’s businesses in Chile and Peru had been sold in 2014 and 2013, respectively.
In April 2015, U.S. telco AT&T completed the acquisition of Nextel Mexico, including spectrum licenses, network assets, retail stores and subscribers for $1.875 billion. Meanwhile, in September 2015, Argentine media giant Grupo Clarin acquired 49% of Nextel Argentina and a call option for the remaining 51% of the equity for $178 million.