Traders that caught the bottom at $0.36 for NII Holdings (NASDAQ:NIHD), formerly known as Nextel International, last month were already dancing and got another boost in Tuesday trading on news the company will is getting a significant investment to try and revitalize its Nextel Brazil operations.
NII has teamed up with international telecom AINMT Holdings AB, the parent of the Norwegain operator ice, to jointly own and operate NII's Brazilian mobile telecommuncations company Nextel Brazil.
Per the new pact, AINMT will invest $50 million for a 30% stake in Nextel Holdings S.à r.l., a wholly owned subidiary of NII Holdings and the owner of Nextel Brazil. AINMT will also have the option to invest another $150 million in the subsidiary for a total $200 million investment and 60% ownership in Nextel Holdings.
The deal gives NII the money it did not have to invigorate Nextel Brazil, as well as brings AINMT's skill set, experience, assets and major partners to the table.
NII scared investors in the past, filing for Chapter 11 bankruptcy protection in 2014 after years of struggling with steep debt and intense competition in its main markets of Brazil and Mexico.
Shares of NIHD closed Monday at 65 cents and shot out of the gate on Tuesday to gap ahead to open at $1.07 before rising as high as $1.22.
The stock has slid back to 91 cents as the day winds down, representing a gain of 39.99% for the day.
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