Canada-based Brookfield Infrastructure Partners L.P. has recently announced plans to acquire Ohio’s telecommunications service provider Cincinnati Bell Inc. for roughly $2.6 billion. Reportedly, the acquisition agreement has gained a green signal from Cincinnati Bell’s Board of Directors but still needs to clear customary closing condition and bag an approval from regulators and shareholders.
According to a statement, Lynn A. Wentworth, Chairman of Board of Directors, Cincinnati Bell, said that after thoroughly examining a variety of possible business opportunities and strategic options for increasing the company’s value, the Board came to a decision that this deal would be lucrative for the firm as well as for its customers and shareholders.
The transaction would offer immediate and clear value at an appealing premium and would come as a thrilling new chapter for their company, said Wentworth.
As for Leigh Fox, Chief Executive Officer and President, Cincinnati Bell, the acquisition reinforces their firm’s financial position, allowing accelerated investment in its strategic devices which are currently not available to them as a standalone firm. This deal would fuel the company’s growth and could increase its value over a long term, further benefiting all the stakeholders of Cincinnati Bell.
Fox added that Brookfield’s investment would help scale the company and would enable the firm to deliver next-gen, integrated communications for all its users through an extended fiber network. Moreover, additional resources like management and financial that Cincinnati Bell has received from the acquisition would improve its services and networks, thereby benefiting its customers from Ohio, Hawaii, Indiana, and Kentucky.
For the record, Cincinnati Bell operates and owns the best data distribution and transmission network in Hawaii and Cincinnati, Ohio. It has a footprint in more than 1.3 million houses and provides core fiber broadband, voice and video facilities to enterprise and residential customers.