Shenandoah Telecommunications

History

2021: T-Mobile purchased cellular business of Shentel for $1.9 billion

At the beginning of February, 2021 T-Mobile settled a dispute over an occasion of acquisition value of cellular business of Shenandoah Telecommunications Company (Shentel). The final cost of the transaction was $1.95 billion.

Shentel is "daughter" of ‎Sprint since 1995, the company manages own wireless network and is engaged in retail, but sells services under the Sprint brand. Within the partnership agreement signed by Sprint and Shentel in 1999, any company which purchases Sprint also has an opportunity to purchase business of cellular communication of Shentel.

In 2020 the T-Mobile operator announced intention to purchase cellular Shentel business, however the companies could not approve the transaction price. As a result both companies agreed to comply conditions of the partnership agreement between Sprint and Shentel and addressed three independent service providers in the field of expert evaluation. Providers estimated Shentel business approximately at $2.1 billion, and T-Mobile agreed to purchase it approximately for 90% of the posted price - for $1.95 billion.

T-Mobile purchased Shentel for $1.9 billion

Shentel and T-Mobile stated that they expect to close the transaction in the second quarter 2021.

According to financial analysts of Raymond James, Shentel will receive about $1.5 billion from sale and will be able potentially to use this money for dividend payout to shareholders, development of the business of broadband communications, acquisitions of other companies or for other corporate purposes.

Acquisition of business of Shentel by T-Mobile company will allow to increase its customer base and also provides advantages to further development. It is remarkable as T-Mobile participated in an auction of the Federal commission on communication (FCC) on a C-range range - it is expected that the company will obtain licenses to use of a range for billions of dollars. FCC will declare winners of an auction at the end of February or at the beginning of March, 2021.^[1]

Notes