Hawaiian Telcom is still poised to get a new owner with the $2.9 billion buyout of its parent company on track.
Cincinnati Bell said Tuesday it has endured some challenges from COVID-19 but that its sale to Macquarie Infrastructure Partners is expected to close in the first half of next year. The sale to Macquarie was announced in March following a bidding war with Brookfield Infrastructure that ramped up the value of the deal and cost Cincinnati Bell a $25 million breakup fee.
“Our agreement to be acquired by MIP is an important milestone for Cincinnati Bell, with the transaction price of $15.50 per share reflecting the robust process executed to ensure maximum value for all of our stakeholders,” Cincinnati Bell President and CEO Leigh Fox said as the company reported a first-quarter loss that widened to $36.6 million from $29.5 million in the year-earlier period.
The company’s revenue was flat at $380 million during the quarter as Hawaiian Telcom contributed $77 million of that amount.
“We started the year with strong momentum and great performance,” Fox said. “Heading into the second quarter, we recognize there will be volatility resulting from the COVID-19 pandemic and have identified opportunities to mitigate the impact. We remain confident the team will execute on our initiatives and deliver solid results.”
Cincinnati Bell acquired Hawaiian Telcom in July 2018 for $650 million in stock and cash.
The deal with Macquarie still requires Cincinnati Bell shareholder and regulatory approval.
Hawaiian Telcom, which has about 1,200 employees, has been heavily investing in its fiber-optic network to provide high-speed internet as well as video services through Hawaiian Telcom TV.