Consolidated Communications Shares Soar 16% on Sale of Wireless Investments to Verizon for $490M
2022.08.02 01:38
Consolidated Communications Shares Soar 16% on Sale of Wireless Investments to Verizon for $490M
By Davit Kirakosyan
Consolidated Communications (NASDAQ:CNSL) shares rose more than 16% after-hours Monday following the company’s announcement, according to which its subsidiary Clio Subsidiary, LLC has entered into an agreement to sell its limited partnership interests in five wireless partnerships managed by Cellco Partnership, d/b/a Verizon Wireless (NYSE:VZ), to Cellco for $490 million.
The net proceeds of the transaction, which is expected to close by the end of 2022, are expected to support the Consolidated Communications Holdings’ Fiber to the Premises (FttP) build plan, the company’s key strategic priority.
“The sale of these wireless investments is part of our long-term strategy as we continue our transformation to a fiber-first broadband company,” commented Bob Udell, President and Chief Executive Officer of Consolidated Communications. “Proceeds from these transactions will directly support our fiber expansion plan, our key strategic priority,” commented Bob Udell, President and Chief Executive Officer of Consolidated Communications.
