EDINBURGH, Virginia, July 06. 12, 2021 (GLOBE NEWSWIRE) — Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) today issued a press release along with the following letter to shareholders.
Late last week, we made two important announcements regarding your business and your investment in our stock. These announcements relate to the completion of the sale of our wireless assets and business and the decision of the Board of Directors to declare a significant special dividend. The sale and the special dividend are unique events in the history of your company, and I want to provide you with some additional information regarding these actions.
July 1st, we completed the sale to T-Mobile USA, Inc. of our wireless assets and business. The cash consideration for the sale was approximately $1.94 billion, including adjustments and net of certain transaction costs. The closing ends the sale process initiated in August 2020, when T-Mobile notified that it was exercising its option under our contracts with Sprint to buy our wireless business. Personal communications services represented the largest of our businesses, and the completion of the sale marks the end of your company’s 25 years as a provider of mobile wireless personal communications services.
Following the completion of the sale, on July 2n/a, the Board of Directors declared a special cash dividend of $18.75 per share. This dividend is payable on August 2, 2021 to shareholders of record at the close of business on July 13, 2021. Since the special dividend represents more than 25% of the current stock price, in accordance with NASDAQ rules, the stock is will trade ex-dividend from August 3, 2021, the first business day following the payment date. The trading price will then reflect the value of the share without the special dividend.
This special dividend should be taxable as a qualified dividend subject to your holding period and return a significant portion of the value of your shares to you. The amount of the special dividend is much higher than previous annual dividends and may affect your tax planning. We strongly encourage you to seek advice from your tax advisor regarding potentially significant personal tax liabilities.
For shareholders enrolled in the Dividend Reinvestment Plan as of July 13and date of record, dividends paid on the listed shares are expected to be used to purchase common shares of the company in market transactions. These purchases should take place within thirty days following the date of payment of the dividend. If you wish to change your current election regarding reinvestment of dividends, you must contact the company’s transfer agent by calling 540-984-5200 or emailing [email protected] well before July 13. .and check-in date in order to complete and deliver the necessary documents. If your shares are held in a brokerage account, any questions regarding the dividend or reinvestment should be directed to your broker.
The completion of the wireless services sale and the payment of the special dividend are significant milestones in the company’s nearly 120 years – and we are excited to begin a new chapter in our long and successful history. Going forward, we are a broadband-centric company, focused on growing our Cable, Glo Fiber, Wireless Fixed Beam and Commercial Fiber businesses. We believe we have the experience and expertise to continue executing our growth strategy, providing quality telecommunications services to our customers and the communities we serve.
On behalf of your Board of Directors, I appreciate your continued interest in and support of the company.
Christophe E. French
President and CEO
About Shenandoah Telecommunications
Shenandoah Telecommunications Company (Shenandoah Telecommunications Company (Shentel) provides broadband services through its state-of-the-art high-speed wired, fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States The Company’s services include: high-speed Internet, video and voice; fiber optic Ethernet, wavelength and rental; and tower colocation rental. The Company owns more than 6,800 miles of fiber route and 223 macro cell towers.For more information, please visit www.shentel.com.
This press release contains forward-looking statements about Shentel relating to, among other things, its business strategy, prospects and financial condition. 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, the forward-looking statements are not, and should not be relied upon as, guarantees of future performance or results, and they will not necessarily prove to be accurate indications. the times at which 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. 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.
|Shenandoah Telecommunications Company
Senior Vice President – Chief Financial Officer