By Will Feuer
Shares of Consolidated Communications rose after the fiber company agreed to be bought for $4.70 a share by private-equity firm Searchlight Capital Partners and British Columbia Investment Management.
The stock climbed 18% to $4.18. So far this year, the stock is up almost 17% after a previous offer from the two firms helped prop shares up.
The company has faced various challenges, including rising operating costs and higher interest rates, as it works to build up its next-generation fiber network. Chief Executive Bob Udell said the company recently delayed the estimated completion date for its fiber build to beyond 2026.
The purchase price of $4.70 a share is a roughly 70% premium to the closing price of the company’s stock on April 12, before the company disclosed the initial buyout offer.
Consolidated Communications considered other alternatives to the deal, including a cash injection, but decided the buyout was the best path forward, Chairman Robert Currey said.
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