Shenandoah Telecommunications Co., has agreed to purchase nTelos Holdings in a deal valued at about $330 million in cash and debt and separately expanded its affiliate relationships with Sprint that will almost double its wireless customer base.
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Investment analysts at Jefferies Group hoisted their price target on shares of NTELOS Holdings Corp (NASDAQ:NTLS) from $6.00 to $9.25 in a note issued to investors on Wednesday, StockTargetPrices.com reports.
Shentel will acquire nTelos’ wireless network assets, retail stores and about 298,000 retail subscribers left in nTelos’ western markets. It will also be paying off nTelos’ outstanding debt worth $523 million. The organizations said their individual sheets of executives have affirmed the arrangement consistently.
Both Shentel and nTelos have wholesale partnerships with Sprint.
Current Sprint and Shentel customers will not be impacted by these transactions. The new agreement will result in converting around 291,000 of customers across the ShenTel markets into “Sprint branded affiliate customers”, among which 8,000 nTelos customers will be adapted as Sprint-branded retail customers.
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at NTELOS is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
In addition to its wireless service, Shentel provides TV, broadband, and home phone services.
NTELOS Holdings Corp.is a regional provider of digital wireless communications services to consumers and businesses primarily in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. NTelos had planned to shut down service in the Eastern Markets by mid-November. This all-cash transaction greatly benefits NTELOS shareholders by providing a liquidity event at an attractive premium. The Company offers approximately 37 devices across 11 brands, including Apple iPhone, Motorola, LG, Samsung and HTC products, and offers its customers smartphone operating systems, such as Android and iOS. Shentel is also expanding its affiliation with Sprint, adding 150 coverage sites for a bigger network.
In concert with the NTelos deal, ShenTel and Sprint have agreed to exchange certain assets in nTelos’ Western area. Shentel will also be able to utilise Sprint’s 2.5 GHz spectrum within its footprint. Likewise, the Sprint-branded customer base will continue to benefit from NTELOS’s high quality wireless network and robust retail presence. Pirtle says about the only difference is nTelos customers will see that their bills have a Shentel letterhead.
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Financial terms of the sale weren’t disclosed.
