Brookfield raises Cincinnati Bell offer to USD2.75bn to fend off rival bidder

3 Mar 2020

Cincinnati Bell has announced that it has amended its definitive merger agreement with Brookfield Infrastructure and its institutional partners (collectively referred to as ‘Brookfield’) to increase the latter’s takeover offer from USD10.50 per share in cash to USD12.50 per share in cash – valuing the transaction at approximately USD2.745 billion, including debt.

The amended agreement follows the telco’s receipt of a rival USD12.00 per share takeover bid from an unidentified infrastructure firm in late January. Cincinnati Bell’s Board of Directors has approved the new agreement and recommends that shareholders vote in favour of adopting the amended Brookfield merger agreement.

The revised transaction price represents a 62% premium to the closing per share price of USD7.72 on 20 December 2019 – the last trading day prior to the date when the merger agreement was first entered into.

TeleGeography notes that Cincinnati Bell owns and operates the leading data transmission and distribution network in Cincinnati, Ohio and Hawaii, with a footprint that passes more than 1.3 million homes, delivering core fibre broadband, video and voice services to residential and enterprise customers.

United States, Brookfield Infrastructure Partners, Cincinnati Bell (incl. Hawaiian Telcom)