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BRIEF-Mitel to divest mobile business Xura Inc's parent company
December 19, 2016 / 11:32 AM / a year ago

BRIEF-Mitel to divest mobile business Xura Inc's parent company

Dec 19 (Reuters) - Mitel Networks Corp

* Mitel signs definitive agreement to divest mobile business

* Mitel’s board of directors has approved sale of mobile division

* Mitel Networks - as a result of divestiture, Mitel expects to record a significant write-down of goodwill relating to transaction in Q4 of 2016

* Mitel Networks Corp - as a result of divestiture, Mitel expects to record a significant write-down of goodwill relating to transaction in Q4 of 2016

* Mitel Networks Corp says has entered into a definitive agreement to divest its mobile division to parent company of Xura Inc

* Mitel Networks - deal for $350 million in cash, a $35 million non-interest bearing promissory note and an equity interest in Sierra Private Investments L.P.

* Cash portion of purchase price is subject to adjustments for closing working capital and indebtedness

* Intends to implement share buyback program in conjunction with full evaluation of capital structure

* Mitel Networks Corp says cash proceeds from sale will be used to pay down Mitel’s existing credit facility

* Proceeds from sale of mobile division will not be used to repurchase Mitel shares

* Board of directors has approved sale of mobile division

* Proceeds from sale of mobile division will not be used to repurchase Mitel shares Source text for Eikon: Further company coverage:

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