QUALCOMM Announces Closing of Transaction Related to Pegaso Telecommunicaciones
biz.yahoo.com
Monday September 16, 7:30 am ET
SAN DIEGO, Sept. 16 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the closing of the transaction in which Telefonica Moviles, S.A. acquired 65 percent of Pegaso Telecommunicaciones, S.A. de C.V., with the Burillo Group continuing to own 35 percent. As further announced by Telefonica, Telefonica and the Burillo Group have contributed their respective interests in Pegaso to a new entity that is owned 92 percent by Telefonica and 8 percent by the Burillo Group. This new entity now owns Pegaso and the four Mexican mobile telephony operators acquired by Telefonica during 2001, making this new entity Mexico's second largest mobile telephony operator covering the whole of Mexico.
As a result of this transaction, QUALCOMM will receive approximately $525 million in cash within 60 days, of which QUALCOMM will use approximately $140 million to acquire existing secured debt in Pegaso, upon which QUALCOMM will then own secured debt in Pegaso amounting to approximately $480 million.
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Qualcomm Closes Transaction Related To Pegaso
Monday September 16, 7:46 am ET
SAN DIEGO -(Dow Jones)- Qualcomm Inc. (NasdaqNM:QCOM - News) sold its interest in Pegaso PCS S.A. (E.PEG) to Telefonica Moviles S.A. (TEM) and will receive for about $525 million in cash, which it will receive within 60 days.
Telefonica Moviles, the cellular unit of Spain's Telefonica S.A. (E.TEF), now owns 65% of Pegaso Telecommunicaciones, with the Burillo Group continuing to own 35%, Qualcomm said in a press release Monday.
Telefonica Moviles said in May it signed a definitive agreement to buy 65% of the share capital of Pegaso for $87 million in cash.
Telefonica and the Burillo Group have contributed their respective interests in Pegaso to a new entity that is owned 92% by Telefonica and 8% by the Burillo Group.
This new entity now owns Pegaso and the four Mexican mobile telephone operators acquired by Telefonica during 2001, making the new company Mexico's second-largest mobile telephone operator covering all of Mexico.
Of the $525 million in cash, Qualcomm, Pegaso's largest creditor, will use about $140 million to acquire existing secured debt in Pegaso, upon which Qualcomm will then own secured debt in Pegaso of about $480 million.
Shares of Qualcomm closed Friday at $28.58, up 42 cents, or 1.5%, in Nasdaq trading. |
