Cincinnati Bell Will Take Over Hawaiian Telcom for $650 Million

Hawai‘i’s leading fiber-based integrated communications provider, and Cincinnati Bell, a leading fiber and IT services and solutions business, today announced that their boards of directors approved a definitive agreement under which the companies will combine in a cash and stock transaction valued at approximately $650 million, including the assumption of net debt.

Under the agreement, Hawaiian Telcom 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, subject to proration such that the aggregate consideration to be paid to Hawaiian Telcom stockholders will be 60 percent cash and 40 percent Cincinnati Bell common

stock. This consideration represents a 26 percent premium to Hawaiian Telcom’s closing price of $24.44 on July 7, 2017, 24 percent premium to the volume-weighted average price of the last 20 calendar days of $24.86, and 31 percent premium to the volume-weighted average price of the last 12 months of $23.55. Upon the closing of the transaction, Hawaiian Telcom stockholders will own approximately 15 percent and Cincinnati Bell stockholders will own approximately 85 percent of the combined company.

Read full details of the merger here: http://www.hawaiiantel.com/Portals/15/News%20PDFs/20170710_Hawaiian%20Telcom%20Enters%20into%20Definitive%20Agreement%20to%20Merge%20with%20Cincinnati%20Bell.pdf

U.S. Senator Brian Schatz (D-Hawai‘i), lead Democrat on the Senate Subcommittee on Communications, Technology, Innovation, and the Internet, released the following statement on the proposed merger between Hawaiian Telcom and Cincinnati Bell.

“Hawaiian Telcom has been an engaged corporate citizen in Hawai‘i for generations. The hundreds of jobs it provides and the services it offers are vital to Hawai‘i’s local economy. As the lead Democrat on the Commerce Committee’s telecommunications subcommittee, I will carefully review the proposed merger and closely monitor its potential impact on local jobs as well as the telecommunications services it provides for Hawai‘i consumers.”

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