Consolidated Communications Shareholders Approve Proposed Transaction with Searchlight and BCI
January 31 2024 - 4:17PM
Business Wire
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the
“Company” or “Consolidated”), a top 10 fiber provider in the U.S.,
today announced that, based on the preliminary vote count provided
by its proxy solicitor following the Company’s special meeting of
shareholders (the “Special Meeting”) held earlier today,
Consolidated shareholders have voted overwhelmingly to approve the
proposed acquisition of the Company by affiliates of Searchlight
Capital Partners, L.P. (“Searchlight”) and British Columbia
Investment Management Corporation (“BCI”) (the “Proposed
Transaction”). Approximately 75% of disinterested shareholders
voted to approve the proposal to adopt the merger agreement and
approve the Proposed Transaction. Consolidated will file final,
certified voting results on a Form 8-K with the U.S. Securities and
Exchange Commission as soon as practicable.
“Today’s vote by Consolidated shareholders is a clear
endorsement that they recognize the value-maximizing nature of this
transaction,” said Robert J. Currey, the Chairman of the
Consolidated Communications Board and the Special Committee Chair.
“With the financial flexibility and access to capital this
transaction provides, we will be well positioned to bring broadband
services to underserved and unserved communities across rural
America. We look forward to continuing to deliver for our
stakeholders, including our customers and our employees, for many
years to come.”
The Proposed Transaction is expected to close by the first
quarter of 2025, subject to customary closing conditions, including
receipt of regulatory approvals. The Proposed Transaction is not
subject to a financing condition. Following the closing of the
Proposed Transaction, shares of Consolidated Communications common
stock will no longer be traded or listed on any public securities
exchange.
Advisors
Rothschild & Co is acting as financial advisor to the
special committee and Cravath, Swaine & Moore LLP is acting as
its legal counsel. Latham & Watkins LLP is providing legal
counsel to Consolidated Communications.
About Consolidated Communications
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is
dedicated to moving people, businesses and communities forward by
delivering the most reliable fiber communications solutions.
Consumers, businesses and wireless and wireline carriers depend on
Consolidated for a wide range of high-speed internet, data, phone,
security, cloud and wholesale carrier solutions. With a network
spanning nearly 60,000 fiber route miles, Consolidated is a top 10
U.S. fiber provider, turning technology into solutions that are
backed by exceptional customer support.
Forward-Looking Statements
Certain statements in this communication are forward-looking
statements and are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect, among other things, the
Company’s current expectations, plans, strategies and anticipated
financial results.
There are a number of risks, uncertainties and conditions that
may cause the Company’s actual results to differ materially from
those expressed or implied by these forward-looking statements,
including: (i) the risk that the Proposed Transaction may not be
completed in a timely manner or at all; (ii) the possibility that
any or all of the various conditions to the consummation of the
Proposed Transaction may not be satisfied or waived, including the
failure to receive any required regulatory approvals from any
applicable governmental entities (or any conditions, limitations or
restrictions placed on such approvals); (iii) the possibility that
competing offers or acquisition proposals for the Company will be
made; (iv) the occurrence of any event, change or other
circumstance that could give rise to the termination of the
definitive transaction agreement relating to the Proposed
Transaction, including in circumstances which would require the
Company to pay a termination fee; (v) the effect of the
announcement or pendency of the Proposed Transaction on the
Company’s ability to attract, motivate or retain key executives and
employees, its ability to maintain relationships with its
customers, suppliers and other business counterparties, or its
operating results and business generally; (vi) risks related to the
Proposed Transaction diverting management’s attention from the
Company’s ongoing business operations; (vii) the amount of costs,
fees and expenses related to the Proposed Transaction; (viii) the
risk that the Company’s stock price may decline significantly if
the Proposed Transaction is not consummated; (ix) the risk of
shareholder litigation in connection with the Proposed Transaction,
including resulting expense or delay; and (x) (A) the risk factors
described in Part I, Item 1A of Risk Factors in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022 and
(B) the other risk factors identified from time to time in the
Company’s other filings with the SEC. Filings with the SEC are
available on the SEC’s website at http://www.sec.gov.
Many of these circumstances are beyond the Company’s ability to
control or predict. These forward-looking statements necessarily
involve assumptions on the Company's part. These forward-looking
statements generally are identified by the words “believe,”
“expect,” “anticipate,” “intend,” “plan,” “should,” “may,” “will,”
“would” or similar expressions. All forward-looking statements
attributable to the Company or persons acting on the Company’s
behalf are expressly qualified in their entirety by the cautionary
statements that appear throughout this communication. Furthermore,
undue reliance should not be placed on forward-looking statements,
which are based on the information currently available to the
Company and speak only as of the date they are made. The Company
disclaims any intention or obligation to update or revise publicly
any forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131885867/en/
Philip Kranz, Investor Relations +1 217-238-8480
Philip.kranz@consolidated.com
Jennifer Spaude, Media Relations +1 507-386-3765
Jennifer.spaude@consolidated.com
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