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Cincinnati Bell Revises Merger Deal, Again

By  |  March 5, 2020

Cincinnati Bell (CBB) has yet again announced an update regarding its much-awaited merger with Toronto-based conglomerate — Brookfield Infrastructure Partners. The company has revised its merger agreement, increasing the cumulative value of the transaction to US$2.8 billion, up from the previous valuation of US$2.75 billion, including debt.

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    Interestingly, the companies have revised their merger agreement twice since the initial contract signing. Per the revised terms, Cincinnati Bell’s shareholders will be entitled to receive US$13.50 in cash for each outstanding share compared with previous cash consideration of US$12.50 per share. 

    This revised transaction price is up a whopping 75% from the initial closing price of US$7.72 on Dec 20, 2019. Markedly, the amendment is in tune with Macquarie Infrastructure and Real Assets’ unsolicited proposal to acquire Cincinnati Bell’s shares at US$13.50 per share.

    Consequently, after a lot of discussions, it was decided that the regional provider of communication services will ultimately resort to the original suitor. The deal, primarily aimed at reinforcing Cincinnati Bell’s augmented fiber network, is focused on maximizing the value of all stakeholders in the long run. 

    As a result, it will not only provide an immediate thrust to its cash flow but will also augment its growth prospects in the days to come. Expected to close by the end of 2020, the transaction, which has been approved by the board of directors, is still subject to certain regulatory and shareholder approvals.

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