BUENOS AIRES, Argentina,
Nov. 4, 2014 /PRNewswire/ --
Nortel Inversora S.A. (NYSE: NTL) whose sole material
activity is holding 54.74% of the capital stock of Telecom
Argentina S.A. ("Telecom") informs that Telecom has repurchased
15,221,373 of its own stock as of September
30, 2014. As a result, the political and economic rights of
Nortel have increased to 55.60% of Telecom's outstanding stock as
of such date.
Nortel announces consolidated income of Ps.$ 2,678 million for the nine-month period ending
September 30 of fiscal year 2014, of
which Ps.$ 1,464 million correspond
to Nortel as controlling shareholder.
Relevant matters
Summary of the Resolutions approved by the Ordinary and
Extraordinary General Meeting held on April
29, 2014
The Ordinary and Extraordinary General Meeting held on
April 29, 2014 resolved, among other
items:
1) to approve the Annual Report and Financial Statements as
of December 31, 2013;
2) to allocate the non-appropriated profit amount as of
December 31, 2013, of Ps.$ 1,720 million, to the already existing
"Voluntary Reserve for the Future Distribution of Dividends",
for the future distribution of dividends, authorizing the Board of
Directors to approve the timing and amounts to be deducted from the
Voluntary Reserve for the Future Distribution of Dividends, taking
into account the Company's future economic and financial
conditions, and liquidity, and the subsequent distribution of such
amounts as cash dividends.
3) the appointment of the members of the Board of Directors
to serve from the date of this Stockholders' Meeting and for three
fiscal years;
4) the appointment of the members of the Supervisory
Committee for fiscal year
2014.
Distribution of cash dividends
The Company's Board of Directors, during its meeting held on
May 28, 2014, decided to deduct an
amount of Ps.$ 332 million from the
"Voluntary Reserve for the Future Distribution of Dividends" and
distributed such amount as cash dividends, of which Ps.$ 163 million correspond to Series "B" Preferred
Shares and Ps.$ 169 million
correspond to common stock. The above mentioned dividends were made
available as from June 13, 2014.
The Company´s Board of Directors, during its meeting held on
October 10, 2014, decided to deduct
an amount of Ps.$ 217 million from
the "Voluntary Reserve for the Future Distribution of Dividends"
and distributed such amount as cash dividends, of which
Ps.$ 106 million correspond to Series
"B" Preferred Shares and Ps.$ 111
million correspond to common stock. The above mentioned
dividends were made available as from October 23, 2014.
Telecom Italia – Fintech transaction
On November 14th, 2013,
Telecom Italia S.p.A. and Telecom Italia International N.V. (the
"Sellers"), as well as Tierra Argentea S.A. ("Tierra Argentea"), a
company controlled by the sellers, have accepted the offer of
Fintech Group for the acquisition of the entire controlling
interest of Telecom Italia Group in Telecom Argentina, held by the
Sellers, through its subsidiaries Sofora Telecomunicaciones S.A.,
Nortel Inversora S.A. and Tierra Argentea. On December 10th, 2013, Tierra Argentea
formalized the transfer to the Fintech Group of the Class B Shares
of Telecom Argentina, representative of 1.58% of the capital stock
of Telecom Argentina and Nortel's ADRs representative of 8% of the
total Prefer B Shares.
On October 25th, 2014
Telecom Italia S.p.A. accepted an offer from the Fintech Group to
amend and restate the original existing agreement, signed on
November 14th, 2013. Under
the amended agreement: 1) On October
29th, 2014 the sale to Fintech of the 17%
minority interest held by Telecom Italia N.V. International in
Sofora has taken place; 2) the sale of the 51% controlling interest
in Sofora is conditional upon obtaining regulatory approval by the
Argentine Secretary of Communications and will not occur until
after such approval is obtained. The sale is expected to occur
within the next two and a half years.
The majority of Sofora's Board of Directors will continue to be
appointed by Telecom Italia Group until receipt of Argentine
regulatory approval and closing of the sale of Telecom Italia's 51%
controlling interest in Sofora. No material change in the corporate
governance of Sofora and its subsidiaries is foreseen.
As of today, Sofora's shares belong to Telecom Italia S.p.A.
(32.5%), to Telecom Italia International N.V. (18.5%), to W de
Argentina – Inversiones S.L. (32%)
and to Fintech Telecom LLC (17%). The economic rights of Telecom
Italia Group amounted to 19.3% as of September, 30, 2014 and 14.5%
as of today.
(Financial Tables
below)
|
|
|
Nine Month Period
of Fiscal Year ending December 31, 2014
|
(in millions of
Argentine Pesos)
|
|
|
|
|
|
|
|
|
|
Consolidated
Income Statement
|
September
2014
|
September
2013
|
|
|
|
|
|
|
Revenues and other
income
|
24,223
|
19,853
|
Operating
costs
|
(20,394)
|
(16,605)
|
Operating
income
|
3,829
|
3,248
|
Financial results,
net
|
242
|
375
|
Net income before
income tax expenses
|
4,071
|
3,623
|
Income tax
expense
|
(1,393)
|
(1,279)
|
Net
income
|
2,678
|
2,344
|
Other comprehensive
income , net of tax
|
233
|
83
|
Total
comprehensive income for the period
|
2,911
|
2,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet
|
September
2014
|
December
2013
|
|
|
|
|
|
|
Current
assets
|
8,645
|
9,836
|
Non-current
assets
|
16,423
|
13,381
|
Total
assets
|
25,068
|
23,217
|
Current
liabilities
|
8,844
|
9,086
|
Non-current
liabilities
|
2,129
|
2,029
|
Total
liabilities
|
10,973
|
11,115
|
Equity attributable
to Nortel
|
7,820
|
6,603
|
Equity attributable
to non-controlling shareholders
|
6,275
|
5,499
|
Total
equity
|
14,095
|
12,102
|
Total liabilities
and equity
|
25,068
|
23,217
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
Liquidity
(a)
|
0.98
|
1.08
|
Indebtedness
(b)
|
0.78
|
0.92
|
|
|
|
|
|
|
(a) Current assets to
current liabilities
|
|
|
(b) Total liabilities
to shareholders' equity.
|
|
|
SOURCE Nortel Inversora S.A.