Otelco agrees takeover by Oak Hill Capital for USD 106 million

News Broadband United States 27 JUL 2020
Otelco agrees takeover by Oak Hill Capital for USD 106 million

US regional fixed operator Otelco has agreed to go private in a takeover by Oak Hill Capital. The private equity firm will pay USD 11.75 per share cash for the company, valuing its equity at USD 40.6 million. The total enterprise value is USD 105.6 million, including the assumption of Otelco's debt. Oak Hill is paying a 58 percent premium on Otelco's average share price in the second quarter. 

Otelco provides services in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia. The company expects the new shareholder will help accelerate its roll-out of FTTH services. 

Oak Hill is an experienced investor in the sector, having previously held stakes in FirstLight Fiber, Wave, Atlantic Broadband, WoW and Cincinnati Bell. Its current portfolio includes the operators Metronet, Vast Broadband and Claro-MDSL. 

Otelco's largest shareholder, with 49.6 percent of shares has agreed to support the deal. The takeover remains subject to approval at a shareholders meeting and is expected to close in the fourth quarter of 2020. 

Categories:

Fixed

Companies:

Otelco

Countries:

United States

Tags:

Internet Access, M&A buyouts & divestments

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