HONOLULU — Hawaiian Telcom’s shareholders have approved a $650 million cash-and-stock sale to Cincinnati Bell.
The two telephone companies expect the deal to close in the second half of 2018, the Honolulu Star-Advertiser reported .
The transaction still requires regulatory approvals from the Federal Communications Commission, the Hawaii Public Utilities Commission and the state Department of Commerce and Consumer Affairs.
The deal cleared the Hart-Scott-Rodino Act review period with the Federal Trade Commission and the Department of Justice.
Hawaiian Telcom would continue to operate under the same name and maintain its local management and branding.
Stockholders will have the option to elect either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each share of Hawaiian Telcom.
The total amount is subject to proration so that what is paid to Hawaiian Telcom stockholders will be 60 percent cash and 40 percent Cincinnati Bell common stock.
The payout represents a 26 percent premium to Hawaiian Telcom’s closing price of $24.44 on July 7, which was the final trading day before the deal was announced. Upon completion of the deal, Hawaiian Telcom shareholders will own about 15 percent of the combined company and Cincinnati Bell shareholders approximately 85 percent.
We believe this strategic combination will drive long-term value for both companies’ stockholders, customers, employees, and our communities,” Hawaiian Telcom President and CEO Scott Barber said in a statement.
Information from: Honolulu Star-Advertiser, http://www.staradvertiser.com