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What: Following a 25% jump on Wednesday, shares of NII Holdings (NASDAQ: NIHD) are soaring again today after the rumored sale has been made official.
So what: The company, which offers wireless service through its Nextel subsidiary, was reportedly exploring a sale of its Peru business to Chilean phone company Entel. NII officially announced the deal today, selling the division for $400 million. That's less than the $500 million figure that was originally speculated.
Now what: NII said the deal will contribute to its goal of focusing on its largest markets in Mexico and Brazil, adding that the proceeds will boost its liquidity position and ability to expand its next-generation networks in those regions. The company will also continue selling other assets to raise capital, with analysts expecting pending tower sales to be completed within the next few months. NII may be able to generate positive free cash flow by the end of next year.
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