Televisa Buys 30% Nextel stake for $1.44 billion

NII Holdings and Grupo Televisa announced that they have signed an agreement under which Televisa will acquire an equity stake in NII Holding's operating subsidiary in Mexico, Comunicaciones Nextel de Mexico. The investment amount was $1.44 billion in cash for an initial 30% equity stake in Nextel Mexico, which reflects an implied pre-investment value of Nextel Mexico of $4.3 billion.

Televisa will also be granted an option to acquire an additional 7.5% equity interest in Nextel Mexico that will be exercisable on either the 3rd or 4th anniversary of the completion of the initial investment.  NII Holdings will continue to hold the remaining equity interests in Nextel Mexico and Nextel Mexico's proven management team led by Peter Foyo will continue to manage the wireless operation.

The operation allows Televisa to support a wide range of innovative telecommunications and media services.  These new service offerings could include the first quadruple play of converged services including wireless, television, broadband data, and fixed voice services as well as innovative converged services designed to meet the needs of small and medium sized businesses, large enterprises as well as consumers.  These offerings would build upon the unique capabilities of both companies and would further enhance Televisa and Nextel as the premier brands in pay television and wireless services in Mexico.

As we informed last week at Portada-online.com, such and operation was not easy in the legal area. However, last February 12th the legal door finally open and the antitrust regulators gave the green light to Televisa's proposal to purchase a stake of Nextel.

Steve Dussek, Chief Executive Officer of NII Holdings, said a team is already working in Nextel plans for the future, and added: “our team in Mexico will position Nextel Mexico to pursue its plans to acquire spectrum in the upcoming auctions and, if we are successful, to develop and deploy 3G network capabilities, all with a goal of continuing our profitable growth strategy in the future".

Emilio Azcarraga Jean, Chairman and Chief Executive Officer of Grupo Televisa, emphasized about the services they would be able to provide from now on:  “With this venture we will be able to offer to our customer base the first quadruple play in Mexico, which paves the way for a successful integrated media and telecom strategy. In addition, with the various Televisa properties, Nextel Mexico will have access to an unparalleled media and marketing platform.”

 

Future

Televisa is granted an option to acquire an additional 7.5% equity stake in Nextel Mexico on either the 3rd or 4th anniversary of closing of the initial investment, for an exercise price based on the fair market value of Nextel Mexico on those date.

The arrangement includes Televisa's right to appoint 2 of 6 Nextel Mexico board members as well as special approval rights for specified significant decisions, transactions and corporate events. NII Holdings retains 70% of the equity in Nextel Mexico and will appoint the remaining four Nextel Mexico board members

Related Article:

ImpreMedia to Market Televisa's Content for Mobile Devices in the Hispanic Market


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Editorial Staff @portada_online

Portada Staff

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