Nortel Inversora S.A. Announces Consolidated Nine Month Period And Third Quarter Results For Fiscal Year 2017

11/10/17 06:05 PM EST

Nortel Inversora S.A. Announces Consolidated Nine Month Period And Third Quarter Results For Fiscal Year 2017

PR Newswire

BUENOS AIRES, Argentina, Nov. 10, 2017 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel" or the "Company")(NYSE: NTL) announces consolidated income of AR$ 5,675 million for the nine- month period ending September 30 of fiscal year 2017, of which AR$ 3,117 million correspond to Nortel as parent company of Telecom Argentina S.A. ("Telecom").

The sole material activity of Nortel is holding 54.74% of the capital stock of Telecom, representing a holding of 55.60% of the voting and economic rights of Telecom as a result of Telecom's holding of 15,221,373 shares of treasury stock. The holding of such shares of treasury stock has been extended for up to three additional years pursuant to the resolution of the Ordinary and Extraordinary Stockholders Meeting of Telecom held on April 29, 2016.  

 (Financial Tables below)





Nine Month Period of Fiscal Year ending December 31, 2017

(in millions of Argentine Pesos)





Consolidated Income Statement


September 2017

September 2016





Total sales and other income


47,324

38,852

Operating costs


(38,330)

(33,358)

Operating income


8,994

5,494

Financial results, net


(269)

(1,654)

Net income before income tax expenses


8,725

3,840

Income tax


(3,050)

(1,356)

Net income


5,675

2,484

Other comprehensive income, net of taxes


152

274

Total comprehensive income for the period                                 


5,827

2,758









Consolidated Balance Sheet  


September  2017

December  2016





Current assets


19,162

15,620

Non-current assets


38,912

32,354

Total assets


58,074

47,974

Current liabilities


20,524

16,524

Non-current liabilities


11,772

11,527

Total liabilities


32,296

28,051

Equity attributable to Nortel


13,964

10,797

Equity attributable to non-controlling shareholders


11,814

9,126

Total equity


25,778

19,923

Total liabilities and equity


58,074

47,974





Ratios








Liquidity (a)


0.93

0.95

Indebtedness (b)


1.25

1.41





(a) Current assets to current liabilities




(b) Total liabilities to shareholders' equity




          

Relevant Matters

Call for the Ordinary General Stockholders' Meeting of Telecom

Telecom's Board of Directors, in a meeting held on November 2, 2017, resolved to summon for an Ordinary General Stockholders' Meeting to be held on November 30, 2017, for the purpose of considering the delegation of powers to the Board of Directors to decided upon the partial or total withdrawn of the "Reserve for Future Cash Dividends" and the distribution of the withdrawn funds as cash dividends, in the amounts and dates determined by the Board of Directors.

Resolutions of the Company's Common Shares Special Stockholders' Meeting

The Common Shares Special Stockholders' Meeting held on November 10, 2017 resolved to approve the exchange ratio offered to the common shares within the context of the merger of Nortel with and into Telecom , and the subsequent dilution of its voting rights as a result of such exchange ratio.

Resolutions of the Class B Preferred Shares Stockholders' Meeting

The Class B Preferred Shares Stockholders' Meeting held on November 10, 2017, resolved as follows:

a)     To approve the Merger of Nortel with and into Telecom  as surviving company;
b)     To approve the dissolution of Nortel as a result of the merger;
c)     To approve the exchanged ratio of the Class B Preferred Shares of Nortel in exchange for 
        Class B Common shares of Telecom with voting rights as established in the Preliminary 
         Reorganization Agreement dated March 31, 2017;
d)     To approve the waiver and removal of the provisions of Condition N° 9 , under the heading 
         "Commitments" of the Conditions for the issuance of the Class B Preferred Shares;
e)     To approve the legal and accounting documents related to the Merger, including the 
         Preliminary Reorganization Agreement, the special and consolidated financial statements of 
         the merger, the Supervisory Committee's report, the amendment of the bylaws of Telecom 
         Argentina S.A., and the subscription of the Final Reorganization Agreement.

María de los Angeles Blanco Salgado
Officer in Charge of Market Relations

Maria Blanco Salgado
mblancosalgado@ta.telecom.com.ar
54-11-4968-3631

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SOURCE Nortel Inversora S.A.