Shentel (Shenandoah Telecommunications Company) is a Sprint affiliate and operates wireless and wireline networks in rural Virginia, West Virginia, Maryland and Pennsylvania. However, you may have heard, Sprint doesn’t exist anymore – it’s been purchased by T-Mobile.
What Shentel would do for wireless has been up for discussion since the merger, and it’s been long rumored that T-Mobile would buy their wireless business. Now, T-Mobile has confirmed that – but at what cost?
In a filing with the SEC, Shentel said that T-Mobile “delivered to the company notice exercising its option to purchase the assets of our wireless operations.” T-Mobile also disclosed the action in its own SEC filing.
As part of the affiliate agreement between Sprint and Shentel, any company that acquires Sprint also has the option to acquire Shentel’s wireless business at 90% of the “entire business value.”
“The parties were not able to agree on certain terms for an effective appraisal of such assets,” Shentel told the SEC of its negotiations with T-Mobile. “On August 24, 2020, the company delivered to T-Mobile a ‘Notice of Dispute’ relating to such appraisal framework and other contractual terms related to Sprint’s acquisition of the assets of the company’s wireless operations.
The filing states that if both companies don’t settle the price dispute in 60 days, the transaction could go to arbitration.
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