Nortel Inversora S.A. Announces Consolidated First Half Results for the Fiscal Year Ending December 31, 2012

^{Published on 2012-07-31 14:03:41 - Market Wire}
 

Nortel Inversora S.A. Announces Consolidated First Half Results for the Fiscal... -- BUENOS AIRES, Argentina, July 31, 2012 /PRNewswire/ --

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BUENOS AIRES, Argentina, July 31, 2012 /PRNewswire/ -- Nortel Inversora S.A.(NYSE: NTL), whose sole substantial activity is owning 54.741682% of the stock of Telecom Argentina S.A. ("Telecom") and whose sole substantial source of cash income is cash dividends and other distributions paid on such stock, today announced consolidated net income of Ps.1,243 for the six month period ended June 30, 2012 of fiscal year 2012, of which Ps. 647 correspond to Nortel as controlling shareholder.

Relevant matters

Dividends

On April 27, 2012, Telecom Argentina's Annual Stockholders Meeting approved, among other ítems, a cash dividend distribution in the amount of Ps. 807 million, payable as from May 10, 2012, of which Ps. 442 million will be received by Nortel.

Summary of the Resolutions approved by the Ordinary and Extraordinary General and Special Class A Preferred Stockholders' Meeting and the Board Meeting held on June 13 and June 14, 2012, respectively

The above referred Stockholders' Meeting and Board Meeting resolved:

1. the scheduled redemption of 401,794 Class "A" Preferred Shares, i.e., 100% of the outstanding Class "A" Preferred Shares, for an aggregate redemption price of Ps. 363 million;
2. payment of Ps. 81.7 million to cancel 100% of the outstanding preferred basic dividend corresponding as of such date to the Class "A" Preferred Shares;
3. payment of Ps. 22.8 million as additional dividend corresponding to the Class "A" Preferred Shares for fiscal year 2011;
4. payment of Ps. 8.3 million as additional distribution, payable only and exclusively to those holders of Class "A" Preferred Shares who have entered into a settlement agreement with the Company, to the Company's satisfaction, before June 27, 2012, releasing and irrevocably, finally and definitively terminating any claim relating to the Class "A" Preferred Shares;
5. payment of Ps.5.4 million to the holders of Class "B" Preferred Shares as dividend corresponding to fiscal year 2011; and
6. payment of Ps.5.6 million to the holders of ordinary stock as dividend corresponding to fiscal year 2011.

The scheduled redemption referred to in item 1) above was reflected in the Company's books as a reduction of the accounts Capital Stock, Inflation Adjustment of Capital Stock and Share Issue Premiums, while payments referred to in items 2) to 6) were reflected as a reduction of the Voluntary Reserve for the Future Distribution of Dividends..

(Financial Tables below)

1. Current assets to current liabilities
2. Total liabilities to shareholders' equity.

Jorge Alberto Firpo
Responsible in Market Relations
5411-49683631

SOURCE Nortel Inversora S.A.