Macquarie agrees USD2.9bn Cincinnati Bell takeover; Brookfield snags USD24.8m break-up fee

17 Mar 2020

Cincinnati Bell has announced that a Macquarie Infrastructure Partners (MIP)-controlled subsidiary will acquire all of its outstanding shares for USD15.50 per share in a cash transaction valued at approximately USD2.9 billion, including debt. MIP is a fund managed by Macquarie Infrastructure and Real Assets (MIRA). Certain ‘Special Opportunities Funds’ (Ares Funds) managed by the Private Equity Group of Ares Management Corporation have agreed to provide equity financing for the transaction.

Pursuant to the agreement, each issued and outstanding share of Cincinnati Bell common stock will be converted into the right to receive USD15.50 in cash at closing of the transaction. The transaction price represents a 101% 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 Cincinnati Bell’s original merger agreement with Brookfield Infrastructure was executed), and a 7% premium to Brookfield’s prior binding agreement to acquire the company. In connection with the termination of that agreement, Cincinnati Bell confirms that it has paid Brookfield a USD24.8 million break-up fee.