Brookfield Infrastructure buys Cincinnati Bell for USD 2.6 bln

Brookfield Infrastructure has bought Cincinnati Bell for USD 2.6 billion, including debt. The deal has received unanimous approval from Cincinnati Bell’s board of directors but still needs to clear other customary conditions, including company shareholder as well as regulatory approval. It should clear by the end of next year. CEO Leigh Fox said the deal will enable the company to push its value over the long-term and expand its fibre network and services in Hawaii, Ohio, Kentucky and Indiana, and across the nation. 

 

Cincinnati Bell chairman Lynn Wentworth said the acquisition provides “clear and immediate value at an attractive premium and represents an exciting new chapter for Cincinnati Bell.” The acquisition price of USD 10.50 per share represents a 36 percent premium to the closing price of USD 7.72 on 20 December and an 84 percent premium to the 60-day volume weighted average price. 

Cincinnati Bell owns and operates networks in Cincinnati, Ohio and Hawaii, with a footprint of over 1.3 million homes, delivering core fibre broadband, video and voice services to residential and enterprise customers. The company is currently upgrading its network to next generation fibre in preparation for 5G. It has so far completed half of the upgrade, representing more than 17,000 miles of dense metro and last-mile fibre, with plans to continue over the coming years. Brookfield Infrastructure has a global portfolio of assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe.