Nextel Communications Inc. reported a deal with Motorola Inc. to repurchase 6 million shares of Nextel’s Class B common stock for $23.50 per share, or an aggregate purchase price of $141 million. The deal follows similar divestitures by Motorola of Nextel’s common stock and leaves the infrastructure provider with approximately 47.5 million Class A and 29.6 million Class B shares of Nextel’s stock.
Nextel also announced that it was purchasing more than 5.5 million shares of Nextel Partners Inc.’s Class A common stock from Motorola for $13.89 per share, or an aggregate principal of $77.5 million. The stock will automatically convert into Class B common shares of Nextel Partner’s stock, giving Nextel control of more than 84.6 million shares of Nextel Partners Class B stock, or about 32-percent ownership, and leaves Motorola with around 500,000 shares of Nextel Partners’ Class A common stock.
“Once again, as a result of our excellent liquidity position and continued strength in our operations, we are able to take advantage of a capital market opportunity in our own securities and those of Nextel Partners,” said Paul Saleh, executive vice president and chief financial officer at Nextel. “These share purchases allow Nextel to slightly reduce its shares outstanding and increase its percentage ownership in Nextel Partners.”
Nextel’s stock was trading up just over 2 percent early Tuesday at $23.39 per share, while Nextel Partner’s stock was trading up more than 4 percent at $15.40 per share.
In a separate announcement, Nextel said it plans to sell 6.2 million shares or roughly half of its interest in former international subsidiary NII Holdings Inc. in a secondary public offering. NII noted Nextel currently owns approximately 18 percent of its shares.
