8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Aug 2, 2001)

Filed August 2, 2001For Securities:CHTR

Summary

On July 31, 2001, Charter Communications, Inc. (CHTR) announced its offer to acquire the contracts and related assets of High Speed Access Corp. (HSAC) that are currently serving Charter's customers. This strategic move aims to consolidate services and assets directly under Charter's control, enhancing operational efficiency and potentially reducing costs associated with third-party agreements. The proposed transaction has a value of approximately $73 million, comprising cash and the assumption of certain liabilities. As part of the deal, Charter would also cancel its existing Series D preferred stock in HSAC. The offer is contingent on several approvals, including those from the boards of directors of both companies, HSA stockholders, and the successful completion of due diligence. This acquisition, if successful, would represent a significant step for Charter in managing its service delivery infrastructure.

Key Highlights

  • 1Charter Communications made an offer to purchase contracts and assets from High Speed Access Corp. (HSAC) serving Charter's customers.
  • 2The proposed purchase price is approximately $73 million, involving cash and assumption of liabilities.
  • 3Charter will cancel its Series D preferred stock holdings in HSAC as part of the transaction.
  • 4Key Charter executives and board members have resigned from their positions at HSAC.
  • 5The offer is subject to multiple conditions, including board and stockholder approvals for both companies, and satisfactory due diligence.
  • 6Merrill Lynch & Co. is advising Charter on this potential transaction.
  • 7This move indicates Charter's strategy to bring more operational control in-house.

Frequently Asked Questions

Charter is offering to purchase the contracts and associated assets of High Speed Access Corp. (HSAC) that are used to provide services to Charter's customers. This includes assets related to Turnkey contracts and Network Services Agreements, such as call center and network operations center facilities, and HSA-owned equipment located in Charter headends and customer homes.

The proposed purchase price for the contracts and assets is approximately $73 million. This amount will be paid through a combination of cash and the assumption of certain liabilities by Charter.

As of July 31, 2001, High Speed Access Corp. had not yet accepted Charter's offer. The transaction is subject to several conditions, including approval from the boards of directors of both companies, approval from HSAC stockholders, third-party consents, satisfactory due diligence, and the negotiation of definitive agreements.

Charter executives and board members who also served on HSAC's board have resigned from their positions with HSAC. This suggests a move towards a buyer-seller relationship rather than a more intertwined one, as Charter seeks to consolidate these assets and services.