Cincinnati Bell Merger Agreement

Cincinnati Bell Merger Agreement: What You Need to Know

Cincinnati Bell, the Cincinnati-based telecommunications company, entered into a merger agreement with Brookfield Infrastructure and its institutional partners in March 2020. The agreement allows Brookfield to acquire all outstanding shares of Cincinnati Bell, making it a privately held company.

The merger was a significant decision for Cincinnati Bell, as it allows the company to focus on its core business of providing best-in-class fiber internet, data, and voice services. The move is also expected to provide various benefits for customers, including improved network infrastructure and enhanced customer support.

Here are some key things you need to know about the Cincinnati Bell merger agreement:

1. Acquisition Price: The acquisition was worth approximately $2.6 billion, including debt. Brookfield paid $10.50 per share, representing a 36% premium to Cincinnati Bell`s closing price on December 20, 2019.

2. Brookfield Infrastructure`s Investment Strategy: Brookfield Infrastructure is a global infrastructure investor that focuses on assets with stable cash flows and long-term growth potential. The acquisition of Cincinnati Bell is expected to align with this investment strategy, given the company`s stable and diverse revenue streams.

3. Regulatory Approvals: The transaction required regulatory approvals from the Federal Communications Commission (FCC), which was received in March 2020. Additionally, the Ohio Public Utilities Commission approved the deal in August 2020, providing close access to the Ohio market.

4. Cincinnati Bell`s future prospects: The merger agreement may be an opportunity for Cincinnati Bell to expand its reach and bring fiber internet to more customers in the Midwest. It also allows Cincinnati Bell to accelerate its capital investment and network improvements in the region.

5. Impact on Employees: The merger agreement is not expected to impact Cincinnati Bell employees negatively. Brookfield has committed to maintaining Cincinnati Bell`s current employment levels for at least two years after the closing of the transaction.

Overall, the Cincinnati Bell merger agreement is a positive development for the company. It allows Cincinnati Bell to focus on its core business, expand its reach, and provide better services and support for its customers. Additionally, the merger with Brookfield`s significant global infrastructure investor means that the transaction may drive long-term growth and value for the company.

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