NII Holdings Rg (NASDAQ: NIHD) is having an incredibly strong morning in the market this morning, and for good reason. The company announced that it has entered into a partnership with AINMT Holdings. This led to excitement among investors, sending the stock skyward. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:53), NIHD is trading at $1.01 per share after a gain of $0.36 per share or 55.36% thus far today.
NIHD Gains On Partnership
As mentioned above, NII Holdings is having an incredibly strong day in the market today after announcing that it has entered into a partnership agreement with AINMT Holdings AB. Under this agreement, the two companies will jointly own and operate Nextel Brazil.
According to the press release offered with regard to this news, AINMT will be investing $50 million to purchase a 30% stake in NEXTEL Holdings, the wholly-owned subsidiary of NIHD that owns Nextel Brazil. AINMT will also have the ability to purchase a 60% controlling stake in the company if they choose to move forward with an option to invest an additional $150 million. In a statement, NIHD CEO, Steve Shindler, had the following to offer…
“We are excited to partner with AINMT as it continues to export its customer-centric and LTE-driven model to highly populated emerging markets around the globe. We believe that gaining access to their differentiated approach and data-driven strategy will allow Nextel Brazil to significantly expand both its growth and profitability.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NIHD. In particular, we’re interested in following this partnership. If AINMT does make the decision to exercise the option to purchase a controlling stake, the financial benefit to the investors would be tremendous. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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