Shenandoah Telecommunications Company (Shentel) has announced that the appraisal process related to the purchase option for Shentel’s wireless assets and operations previously exercised by T-Mobile US has been completed. In accordance with the terms of the management agreement – and through a process with three independent valuation providers, the purchase price – based on a calculation of 90% of ‘Entire Business Value’ and inclusive of an unrealised Sprint management fee – was determined to be USD1.95 billion in cash, subject to customary purchase price adjustments.
Shentel and T-Mobile expect to enter into a definitive asset purchase agreement during the first quarter 2021 and expect the transaction will close in the second quarter 2021 after satisfying customary closing conditions and obtaining required regulatory approvals. Shentel expects that the after-tax proceeds from the sale of Shentel Wireless will be approximately USD1.5 billion. The transaction will be accounted for as an asset sale for income tax purposes.