CT Communications Announces Sale of Palmetto MobileNet's Interests in Wireless Partnerships to Alltel
March 16 2006 - 6:00AM
PR Newswire (US)
CONCORD, N.C., March 16 /PRNewswire-FirstCall/ -- CT
Communications, Inc. (NASDAQ:CTCI) today announced that Palmetto
MobileNet, L.P. ("Palmetto"), a limited partnership that has a 50%
ownership interest in ten wireless partnerships covering
approximately two million people in North and South Carolina, has
sold its ownership interests in the ten wireless partnerships to
Alltel Corporation for approximately $455 million in cash. CTC
holds a 22.4% interest in Palmetto and expects to receive a pre-tax
cash distribution from Palmetto of approximately $97 million as
proceeds from the sale. CTC anticipates that such funds will be
distributed to it from Palmetto within 10 days. CTC has retained
the investment banking firm of Stifel Nicolaus to assist it in
evaluating potential uses of the proceeds, which may include a
share repurchase offer, funding for its recently announced
broadband service and network plan, and/or strategic investments to
complement its business plan. CTC plans to conclude this evaluation
shortly, and may elect to pursue one or multiple uses of the
proceeds. CTC reports earnings from its minority investment in
Palmetto on the equity method as Other Income. During 2005, CTC
reported approximately $4.3 million in pre-tax Other Income from
Palmetto, or approximately $0.14 diluted earnings per share.
Pre-tax cash distributions from Palmetto were approximately $4.6
million in 2005. This transaction does not affect CTC's wireless
business unit, which offers wireless services in certain North
Carolina counties as part of the Cingular nationwide network. This
press release contains forward-looking statements within the
meaning of the federal securities laws. These forward-looking
statements are based on current expectations and are not guarantees
of future performance. Further, the forward-looking statements are
subject to risks, uncertainties and assumptions made by management
about CTC, and actual events or results may differ materially from
those in the forward-looking statements. CT Communications, Inc. is
headquartered in Concord, N.C. and is a growing provider of
integrated telecommunications and related services to residential
and business customers located primarily in North Carolina. CT
Communications, Inc. offers a comprehensive package of
telecommunications and related services, including broadband
high-speed Internet services, wireless voice and data, local and
long distance telephone services. DATASOURCE: CT Communications,
Inc. CONTACT: Jim Hausman, +1-704-722-2410, or Duane Johnson,
+1-704-722-3231, of CT Communications, Inc. Web site:
http://www.ctc.net/
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