Monday August 21, 11:50 pm Eastern Time
Press Release
Chadmoore Wireless Group, Inc. to Sell Wireless
Communications Business to Nextel
LAS VEGAS--(BUSINESS WIRE)--Aug. 21, 2000--Chadmoore Wireless Group, Inc., (OTC: MOOR - news) a provider
of specialized mobile radio (SMR) communications services under the ``PTT'' (Power to Talk) trade name, announced today
that it has agreed to sell substantially all of its assets to Nextel Communications, Inc. (NASDAQ: NXTL - news) in a tax-free
reorganization in which Nextel Class A common shares valued at $160 million will be issued to Chadmoore. The number of
Nextel shares issued at the closing may be adjusted in accordance with a collar of plus or minus 20%, depending on the price
of Nextel shares prior to the closing, and other potential adjustments as set forth in the definitive agreement. Following the
payment of its liabilities and the expenses of the transaction, Chadmoore intends to distribute the Nextel shares to its
shareholders, which shares are currently anticipated to be valued at approximately $113.5 million. The closing is expected to
occur during the first half of 2001, following satisfaction of several conditions, including premerger notification under the
Hart-Scott-Rodino Antitrust Improvements Act and approval by the Federal Communications Commission and the
shareholders of Chadmoore.
The number of outstanding shares of Chadmoore stock on a fully-diluted basis (including all options, warrants and other
securities that are expected to be converted into shares of Chadmoore stock prior to the closing) is currently estimated to be
approximately 80,500,000, although this number may change significantly prior to the closing based on the actual number of
shares that are issued with respect to those equity equivalents.
Chadmoore Wireless Group, Inc. together with its subsidiaries has an operating territory which covers approximately 55 million
people in 180 markets, primarily in secondary and tertiary cities throughout the United States. Nextel Communications, Inc. is a
leading provider of fully integrated wireless communications services. |
