Shenandoah Telecommunications Company Announces $1.95

EDINBURGH, Virginia, 02 Feb. 11, 2021 (GLOBE NEWSWIRE) — Shenandoah Telecommunications Company (“Shentel”) (NASDAQ: SHEN) today announced that the valuation process related to the option to purchase Shentel’s wireless assets and operations (“ Shentel Wireless”), previously exercised by T-Mobile US, Inc. (“T-Mobile”), 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 the “total business value” and including unrealized management costs unrealized Sprint) for Shentel Wireless was determined to be $1.95 billion in cash, subject to customary purchase price adjustments. Shentel and T-Mobile previously agreed that the determination of “total business value” through the just-completed valuation process is final and binding. Shentel and T-Mobile expect to enter into a definitive asset purchase agreement during the first quarter of 2021 and expect the transaction to close in the second quarter of 2021 after satisfying customary closing conditions and obtaining required regulatory approvals.

Shentel currently expects after-tax proceeds from the sale of Shentel Wireless to be approximately $1.5 billion. The transaction will be accounted for as a sale of assets for income tax purposes.

Conference call and webcast

Shentel will host a conference call and webcast on February 3, 2021 at 8:00 a.m. EST to discuss the anticipated sale of Shentel Wireless, the anticipated use of the proceeds and Shentel’s financial outlook for 2021 with respect to its continued activities. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com

Conference Call Information:

Call number: (888) 695-7639

Password: 1039009

Audio webcast: http://investor.shentel.com/

An audio replay of the call will be available approximately two hours after the call ends, through March 3, 2021, by calling (855) 859-2056.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shenandoah Telecommunications Company (Shentel) provides a wide range of diversified communication services through its high-speed, state-of-the-art wireless, wired, fiber optic and fixed wireless networks to customers in the center of the Atlantic in the U.S. Shentel’s services include: wireless voice and data; high-speed Internet, video and digital voice; fiber optic Ethernet, wavelength and rental; telephone voice and subscriber line digital; and tower colocation rental. Shentel is Sprint’s exclusive personal communications service (“PCS”) affiliate in a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia and parts of Maryland, Kentucky and Ohio. For more information, visit www.shentel.com.

This press release contains forward-looking statements about Shentel regarding, among other things, its business strategy and prospects. These statements can be identified by the use of forward-looking words such as “believes”, “believes”, “expects”, “intends”, “may”, “will”, “should”, ” could” or “anticipates”. ” or the negative or other variation of these words or similar words, or by discussions of strategy or risks and uncertainties. Forward-looking statements are based on management’s current beliefs, assumptions and expectations and may include comments about Shentel’s beliefs and expectations regarding future events and trends affecting its business which are necessarily subject to uncertainties, many of which are beyond Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements, including with respect to the completion of the sale of Shentel Wireless, are not and should not be construed as guarantees of performance or future results. nor will they necessarily be exact indications of when such performance or results will be achieved, and actual results may differ materially from those contained or implied by the forward-looking statements due to a variety of factors. For example, this release discusses the planned sale of Shentel Wireless to T-Mobile, but Shentel and T-Mobile have not yet reached a definitive agreement regarding the planned transaction, and such definitive agreement will be subject to certain fencing. , including receipt of certain required regulatory approvals. Accordingly, there can be no assurance that Shentel and T-Mobile will enter into such definitive agreement or that the closing of the transactions contemplated by such definitive agreement will occur or not be delayed. This release also discusses the estimated after-tax proceeds from the sale of Shentel Wireless, but the actual amount of such proceeds or the Company’s use of such proceeds may differ materially from the expectations set forth in this release. A discussion of other factors that could cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission. These factors may include natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions, cost increases, modifications regulatory and other competitive factors. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update these statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unforeseen events, except as required by law.

CONTACTS:

Shenandoah Telecommunications Company

Jim Volk
Senior Vice President – Chief Financial Officer
540-984-5168
[email protected]

Sean B. Jackson