Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Following a 25% jump on Wednesday, shares of NII Holdings 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.
Interested in more info on NII Holdings? Add it to your watchlist by clicking here.
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
The article Why NII Holdings Shares Soared Again originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.