Shareholders OK LV firm’s takeover

Wednesday, Jan. 30, 2002 | 10:55 a.m.

Shareholders of Chadmoore Wireless Group Inc. of Las Vegas have voted in favor of the sale of that company's assets to Nextel Communications Inc.

The transaction is set to close in early February. Following the close, Chadmoore will be dissolved.

The final price of the takeover is still up in the air. If Nextel's stock price in the 20 trading days before the close is above $10 per share, Nextel would pay $109.6 million in stock, and Chadmoore shareholders would receive 79 cents per share in Nextel stock. If the Nextel average is below this price, Nextel could pay $104.4 million in cash, which would result in proceeds of 57 cents per share for Chadmoore shareholders.

Nextel stock has traded below the $10 mark for the last 11 trading days, and traded today at $7.25 per share. However, Chadmoore has the option of requiring Nextel to pay in stock valued at $10 per share rather than taking cash.

The deal's value could be reduced by an additional $10 million if Chadmoore is unable to transfer certain wireless channel licenses to Nextel. The lowest distribution that would be made to Chadmoore shareholders is 48 cents per share in cash.

Chadmoore is the nation's second-largest holder of "specialized mobile radio" licenses. Specialized mobile radio is a service that allows a cellular phone to be used like a "walkie-talkie."

Chadmoore holds about 4,800 SMR licenses in 180 towns and cities, including Memphis, Tenn., and Little Rock, Ark.