SAN DIEGO, Calif.-In a $50 million transaction, Leap Wireless International Inc. increased its ownership of Chilesat Telefonia Personal S.A. from 50 percent to 100 percent, by purchasing Telex-Chile’s and Chilesat S.A.’s 50-percent ownership in Chilesat PCS.
“We believe this acquisition will give us the opportunity to more expeditiously develop the potential of Chilesat PCS,” said Harvey P. White, Leap’s chairman and chief executive officer.
“We are now able to move forward on our plans to recapitalize Chilesat PCS, improve the network, increase our marketing efforts and aggressively grow the business.”
Leap said its purchase of Telex-Chile’s interest alleviates Chilesat PCS’ problems with short-term funding related to Telex-Chile’s financial condition.
The transaction is expected to close within the next week and is structured with a $28 million cash payment and a deferred payment obligation of $22 million, said Leap.
