Shenandoah Telecommunications Company Issues Letter to Shareholders Regarding Special Dividend
July 06 2021 - 7:00AM
Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN)
today issued a press release with the following letter to
shareholders.
Dear Shareholder:
Late last week, we made two significant announcements regarding
your company and your investment in our stock. These announcements
relate to the completion of the sale of our wireless assets and
operations and the Board of Directors’ decision to declare a large
special dividend. Both the sale and the special dividend are unique
events in your company’s history, and I want to provide some
additional information to you regarding these actions.
On July 1st, we completed the sale to T-Mobile USA, Inc. of our
wireless assets and operations. Cash consideration for the sale was
approximately $1.94 billion, inclusive of adjustments and net of
certain transaction expenses. The closing concludes the sale
process initiated in August 2020, when T-Mobile delivered notice
that they were exercising their option under our contracts with
Sprint to purchase our wireless business. Personal Communications
Services comprised the largest of our businesses, and the
completion of the sale marks the end of your company’s 25 years as
a provider of mobile wireless personal communications services.
Following the completion of the sale, on July 2nd, 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 as of the close of business on July 13, 2021. Because the
special dividend is more than 25% of the current share price, in
accordance with NASDAQ rules, the stock will trade ex-dividend
beginning on August 3, 2021, the first business day after the
payment date. The trading price will then reflect the value of the
stock without the special dividend.
This special dividend is expected to be taxable as a qualified
dividend subject to your holding period, and returns to you a
significant portion of the value of your stock. The amount of the
special dividend is much larger than prior annual dividends and may
impact your tax planning. You are strongly encouraged to
seek advice from your tax advisor regarding the potentially
significant personal tax obligations.
For shareholders enrolled in the Dividend Reinvestment Plan as
of the July 13th record date, the dividends paid on the shares
enrolled are expected to be used to purchase shares of the
company’s common stock in market transactions. These purchases are
expected to occur during the thirty days following the dividend
payment date. If you wish to change your current election
regarding dividend reinvestment, you should contact the company’s
transfer agent by calling 540-984-5200 or emailing
transferagent@shentel.com far in advance of the July
13th record date in order to
complete and deliver the necessary paperwork. If your shares are
held in a brokerage account, any questions regarding the dividend
or reinvestment should be directed to your broker.
The completion of the wireless sale and payment of the special
dividend are significant milestones in the company’s almost 120
years – and we are excited 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, Beam fixed
wireless, and commercial fiber businesses. We believe we have the
experience and expertise to continue to execute on 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 in and support of the company.
Sincerely,
Christopher E. FrenchPresident and Chief Executive Officer
About Shenandoah
Telecommunications
Shenandoah Telecommunications Company (Shentel)
provides broadband services through its high speed,
state-of-the-art cable, fiber optic and fixed wireless
networks to customers in the Mid-Atlantic United States. The
Company’s services include: broadband internet, video, and
voice; fiber optic Ethernet, wavelength and leasing; and tower
colocation leasing. The Company owns over 6,800 route miles of
fiber and 223 macro cellular towers. For more information, please
visit www.shentel.com.
This release contains forward-looking statements about Shentel
regarding, among other things, its business strategy, its prospects
and its financial position. These statements can be identified by
the use of forward-looking terminology such as “believes,”
“estimates,” “expects,” “intends,” “may,” “will,” “should,”
“could,” or “anticipates” or the negative or other variation of
these or similar words, or by discussions of strategy or risks and
uncertainties. The forward-looking statements are based upon
management’s beliefs, assumptions and current expectations and may
include comments as to Shentel’s beliefs and expectations as to
future events and trends affecting its business that are
necessarily subject to uncertainties, many of which are outside
Shentel’s control. Although management believes that the
expectations reflected in the forward-looking statements are
reasonable, forward-looking statements are not, and should not be
relied upon as, a guarantee of future performance or results, nor
will they necessarily prove to be accurate indications of the times
at which such performance or results will be achieved, and actual
results may differ materially from those contained in or implied by
the forward-looking statements as a result of various factors. A
discussion of other factors that may cause actual results to differ
from management’s projections, forecasts, estimates and
expectations is available in Shentel’s filings with the Securities
and Exchange Commission. Those factors may include natural
disasters, pandemics and outbreaks of contagious diseases and other
adverse public health developments, such as COVID-19, changes in
general economic conditions, increases in costs, changes in
regulation and other competitive factors. The forward-looking
statements included are made only as of the date of the statement.
Shentel undertakes no obligation to revise or update such
statements to reflect current events or circumstances after the
date hereof, or to reflect the occurrence of unanticipated events,
except as required by law.
CONTACTS: |
Shenandoah Telecommunications CompanyJim Volk Senior Vice President
- Chief Financial Officer540-984-5168Jim.Volk@emp.shentel.com |
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