BUENOS AIRES, Argentina, Dec. 16, 2013 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel" or the "Company") (NYSE: NTL) holding company of Telecom Argentina S.A., announces that during its meeting held on December 16, the Board decided to deduct an amount from the "Voluntary Reserve for the Future Distribution of Dividends" pursuant to the powers granted by the Annual and Extraordinary General Stockholders' Meetings held on April 27, 2012 and April 26, 2013. The Board has resolved to deduct and distribute as cash dividends an amount of AR$464,300,000. Payment of such dividends will begin on December 27, 2013, or any following date pursuant to applicable law at the jurisdictions where Nortel's shares are listed.
The following amounts will be distributed:
a) to the Class B preferred shares, pursuant to the terms of issuance of such shares and applicable imperative laws, an aggregate dividend of AR$ 227,317,630.6020, which amounts to AR$ 154.58999466 for each Class B share, representing 1,545.89994663% of its par value (AR$10) and AR$ 7.72949973 for each ADR; and
b) to the shares of common stock, an aggregate dividend of AR$236,982,369.3980, which amounts to AR$ 44.45864652 for each share of common stock, representing 444.58646518% of its par value (AR$10).
For stockholders, Record Date is December 26, 2013 and Payment Date is as from December 27, 2013.
For holders of American Depositary Receipts (ADRs), the Record Date is also December 26, 2013 and Payment Date is as from December 27, 2013. For such holders, payment will be made through JPMorgan Chase Bank N.A., Depositary under the ADRs program.
Please note that Nortel will deduct from the dividend –when applicable– the amounts paid by Nortel to the Argentine tax authorities as tax on personal property (under unnumbered Section after Section 25 of Argentine Law No. 23,966, as amended) levied and assessed on Nortel's shares for fiscal year 2013, pro rata all applicable shareholders, except when such shareholders show: (i) that they have deposited the corresponding tax in Nortel's account; or (ii) that they hold no shares of Nortel as of December 31, 2012.
In addition and if applicable, Nortel will withhold 10% of the cash dividend as Income Tax pursuant to Section 90, last paragraph, of Law 20,628, as amended, incorporated by Law 26,893.
With respect to Class B preferred shares and holders of ADRs, taking into account the time needed to determine which shareholders owe such tax, payment of the dividends to those shareholders will be made within ten days of the date on which they are made available, pursuant to Section 90 of the Listing Rules of the Buenos Aires Stock Exchange.
SOURCE Nortel Inversora S.A.