Summary
AT&T Inc. announced on December 16, 2013, a significant divestiture, entering into a Stock Purchase Agreement to sell its incumbent local exchange operations in Connecticut to Frontier Communications Corporation for $2.0 billion in cash. This sale includes AT&T's wholly owned subsidiaries, The Southern New England Telephone Company and SNET America, Inc. This strategic move is expected to impact AT&T's future financial positioning by shedding approximately $1.2 billion in annual revenues. While the transaction is not expected to affect AT&T's 2013 financial results, it is subject to various regulatory approvals, including from the U.S. Department of Justice, the Federal Communications Commission, and Connecticut state regulatory authorities. The closing of the deal is anticipated in the second half of 2014, contingent upon satisfying customary closing conditions. Investors should monitor the progress of regulatory reviews and the ultimate closing of this transaction.
Key Highlights
- 1AT&T Inc. entered into a Stock Purchase Agreement to sell its Connecticut incumbent local exchange operations to Frontier Communications.
- 2The sale price for the Connecticut operations is $2.0 billion in cash.
- 3The divested assets include AT&T's wholly owned subsidiaries, The Southern New England Telephone Company and SNET America, Inc.
- 4The operations being sold generated approximately $1.2 billion in annual revenues as of 2013.
- 5The transaction is not expected to impact AT&T's 2013 financial results.
- 6The deal is subject to regulatory approvals from the DOJ, FCC, and Connecticut state authorities.
- 7The expected closing date for the transaction is the second half of 2014.