US fixed line operator Windstream has announced that it has sold certain fibre-optic assets in Minnesota to Arvig Enterprises, a Minnesota-based provider of fixed line and broadband services. The all-cash transaction is valued at USD49.5 million. Running in parallel, Windstream has also entered into a definitive agreement to sell additional fibre assets in Nebraska to Arvig for USD11 million. As part of the transactions, Windstream will establish a fibre network relationship with Arvig, allowing the selling party to utilise the assets to continue to sell its products and services in Minnesota and Nebraska.
Bob Gunderman, CFO and treasurer at Windstream, commented: ‘These transactions monetise latent dark fibre assets in Minnesota and Nebraska, lower capital requirements in each state and allow us to focus on our core network offerings with minimal change to our operations going forward. The structure also sets a roadmap for future fibre monetisation across our footprint.’