Cincinnati Bell agrees USD650m deal for Hawaiian Telcom

11 Jul 2017

Cincinnati Bell has announced that it has entered into a definitive merger agreement with Hawaiian Telcom, the leading integrated communications provider serving the state of Hawaii, for a total consideration of approximately USD650 million. The price represents a 23.7% premium to Hawaiian Telcom’s trailing 20-day calendar volume weighted average price (VWAP). Under the agreement, Hawaiian Telcom shareholders will have the option to select either: USD30.75 in cash; 1.6305 shares of Cincinnati Bell common stock; or a mix of USD18.45 in cash and 0.6522 shares of Cincinnati Bell common stock (for each share of Hawaiian Telcom).

Following the transaction, Cincinnati Bell and Hawaiian Telcom will retain their names and separate brand identities while sharing best practices and resources. Hawaiian Telcom will continue to be locally managed from Hawaii, and have two seats on the combined company’s board. The operators’ combined fibre networks will exceed 14,000 fibre route miles. In addition, Hawaiian Telcom provides Cincinnati Bell with direct access to the 2.6TB of Trans-Pacific fibre cable capacity linking Asia and the US, which expands the telco’s route diversity.

In a separate transaction, Cincinnati Bell has signed a definitive agreement to acquire OnX Enterprise Solutions, a technology services and solutions provider that is operational in North America and the United Kingdom. This transaction has been valued at approximately USD201 million, on a cash-free, debt-free basis. Both transactions are subject to customary regulatory approvals and other customary closing conditions for each transaction. In particular, the Hawaiian Telcom combination is subject to certain federal, state, and local regulatory approvals and approval by Hawaiian Telcom’s shareholders. Cincinnati Bell anticipates that the OnX transaction will close at the beginning of the fourth quarter of 2017, while the Hawaiian Telcom transaction is expected to close in the second half of 2018. The transactions are not conditioned on each other.

United States, Cincinnati Bell (incl. Hawaiian Telcom), Hawaiian Telcom