je.st
news
Sprint affiliate Shentel to buy Ntelos for USD 640 mln
2015-08-11 08:59:00| Telecompaper Headlines
(Telecompaper) Shenandoah Telecommunications (Shentel) has entered into a definitive agreement to acquire fellow US regional mobile operator Ntelos for approximately USD 640 million in cash. Shentel will assume Ntelos's net debt, which stood at USD 431 million at the end of June, adjusted for its expected obligations from winding down its Eastern Markets division in November. Ntelos shareholders will receive around USD 208 million in cash, or USD 9.25 per share, an approximately 60 percent premium over the last 30 days. The purchase will be financed with an expanded credit facility. The 'nTelos Wireless' brand will be discontinued in favour of Sprint, with which Shentel has concurrently extended its affiliate relationship. Ntelos's 297,500 retail customers in its Western Markets, (parts of Virginia, West Virgina, Maryland, North Carolina, Pennsylvania, Ohio, Kentucky) will use the Sprint branded service. Shentel will continue to upgrade the nTelos network to 4G LTE and expand coverage in the areas with at least an additional 150 sites over the next three years, using spectrum acquired by Sprint and made available to Shentel as part of the transaction.
Tags: buy
usd
affiliate
sprint
Category:Telecommunications