Shenandoah Telecommunications Company issues letter to shareholders regarding special dividend
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EDINBURGH, Virginia, July 06, 2021 (GLOBE NEWSWIRE) – Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) today issued a press release containing the following letter to shareholders.
At the end of last week, we made two important announcements regarding your business and your investment in our stocks. These announcements relate to the finalization of the sale of our wireless assets and businesses 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 additional information regarding these actions.
July 1st, we completed the sale to T-Mobile USA, Inc. of our wireless assets and businesses. The cash consideration for the sale was approximately $ 1.94 billion, including adjustments and net of certain transaction costs. The close ends the sale process that began in August 2020, when T-Mobile notified it was exercising its option under our contracts with Sprint to purchase our wireless business. Personal communications services were the largest of our businesses, and the closing of the sale marks the end of your 25 years as a provider of mobile wireless personal communications services.
Following the completion of the sale, July 2sd, 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 is greater than 25% of the current share price, in accordance with NASDAQ rules, the share will be traded 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 an eligible dividend subject to your holding period and returns 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 obligations.
For shareholders registered in the Dividend Reinvestment Plan as of July 13e Date of registration, dividends paid on 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 of the date of payment of the dividend. If you want to change your current choice of dividend reinvestment, you should contact the company’s transfer agent by calling 540-984-5200 or emailing [email protected] well in advance of July 13.e date of registration in order to complete and submit the necessary documents. If your shares are held in a brokerage account, any questions regarding dividend or reinvestment should be directed to your broker.
The completion of the wireless sale and the payment of the special dividend are important milestones in the nearly 120 years of the company – and we are delighted 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, fixed wireless Beam and commercial fiber businesses. We believe we have the experience and expertise to continue to execute 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 and support for the company.
Christophe E. French
President and CEO
About Shenandoah Telecommunications
Shenandoah Telecommunications Company (Shentel) provides broadband services through its state-of-the-art high-speed, fixed-line wired, fiber-optic and wireless networks to customers in the central United States. The Company’s services include: High speed Internet, video and voice; fiber optic Ethernet, wavelength and leasing; and the rental of colocation towers. The Company has more than 6,800 miles of fiber road and 223 macrocell towers. For more information, please visit www.shentel.com.
This press release contains forward-looking statements with respect to, among other things, Shentel’s business strategy, prospects and financial condition. These statements can be identified by the use of forward-looking terms such as “believes”, “believes”, “expects”, “intends”, “could”, “want”, “should”, ” could ”or“ could ”or“ foresee ”” 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 the current beliefs, assumptions and expectations of management and may include comments on Shentel’s beliefs and expectations regarding future events and trends affecting its business which are necessarily subject to uncertainties, many of which are are beyond Shentel’s control. Although management believes that the expectations reflected in forward-looking statements are reasonable, forward-looking statements are not and should not be taken as guarantees of future performance or results, nor will they necessarily turn out to be accurate indications of the future. the times at which such performance or results will be achieved, and actual results may differ materially from those contained or implied by forward-looking statements due to various factors. A discussion of other factors that could cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in the documents filed by Shentel with the Securities and Exchange Commission. These factors may include natural disasters, pandemics and epidemics of contagious diseases and other developments unfavorable to public health, such as COVID-19, changes in general economic conditions, cost increases, changes in regulations. and other competitive factors. The included forward-looking statements are made only as of the date of the statement. Shentel assumes 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