Cincinnati Bell bidding war continues as Brookfield matches Macquarie offer

5 Mar 2020

Brookfield Infrastructure has raised its takeover offer for regional US operator Cincinnati Bell from USD12.50 per share to USD13.50 per share, in an effort to fend off interest from rival suitor Macquarie Infrastructure and Real Assets (MIRA). The latest Brookfield offer – which was submitted on 4 March – matches MIRA’s USD13.50 per share offer. The new offer values the transaction at approximately USD2.797 billion, including debt. This price represents a 75% premium to the closing per share price of USD7.72 on 20 December 2019 (i.e. the last trading day prior to the date when the original merger agreement was entered into).

Cincinnati Bell’s board, in consultation with its legal and financial advisors, has reviewed the terms of the proposal and determined that entering into the new Brookfield merger agreement is in the best interests of the telco and its shareholders. As such, the board of directors has approved the amended deal and recommends that Cincinnati Bell’s shareholders vote in favour of adopting the new Brookfield offer.

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.