Consolidated Communications Announces Definitive Agreement to Sell its Ohio Assets
Consolidated Communications (NASDAQ: CNSL) has announced an agreement to sell its Ohio assets to Middle Point Home Telephone Company. This divestiture aligns with Consolidated's strategic focus on core broadband regions. The Ohio operations generated approximately $9 million in revenue in fiscal 2020 and include around 4,000 access lines and 3,900 Internet connections. The transaction is subject to regulatory approvals, anticipated to be completed by year-end, with further details to be provided during the Q3 2021 earnings call.
- Divestiture aligns with strategic focus on core broadband regions.
- Ohio operations generated approximately $9 million in revenue in fiscal 2020.
- Asset sale could lead to revenue loss in the short term.
- Regulatory approvals for the sale may introduce uncertainty.
Consolidated’s
“Our family is very excited to enter into this agreement and expand our
About
About
Safe Harbor
Certain statements in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies, and anticipated financial results. There are a number of risks, uncertainties, and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include a number of factors related to our business, including the uncertainties relating to the impact of the novel coronavirus (COVID-19) pandemic on the Company’s business, results of operations, cash flows, stock price and employees; the possibility that any of the anticipated benefits of the strategic investment from Searchlight or our refinancing of outstanding debt, including our senior secured credit facilities, will not be realized; the outcome of any legal proceedings that may be instituted against the Company or its directors; the ability to obtain regulatory approvals and meet other closing conditions to the investment on a timely basis or at all, including the risk that regulatory approvals required for the investment are not obtained subject to conditions that are not anticipated or that could adversely affect the Company or the expected benefits of the investment; the anticipated use of proceeds of the strategic investment; economic and financial market conditions generally and economic conditions in our service areas; various risks to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a significant amount of cash to service and repay the debt restrictions contained in our debt agreements that limit the discretion of management in operating the business; regulatory changes, including changes to subsidies, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with our possible pursuit of acquisitions; system failures; cyber-attacks, information or security breaches or technology failure of ours or of a third party; losses of large customers or government contracts; risks associated with the rights-of-way for the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of our network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; and liability and compliance costs regarding environmental regulations; and risks associated with discontinuing paying dividends on our common stock. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are discussed in more detail in our filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20210924005515/en/
Phone: 507-386-3765
Jennifer.spaude@consolidated.com
Phone: 510-316-1430
Nicole.elton@consolidated.com
Source:
FAQ
What assets is Consolidated Communications selling?
How much revenue did Ohio operations generate for Consolidated Communications?
What is the expected timeline for the asset sale closure?
What will happen to customers after the sale of Ohio assets?