Consolidated Communications Reiterates Proposed Transaction Is The Best Outcome For Shareholders; Shareholders Will Avoid Risk And Maximize The Value Of Their Shares By Voting For The Proposed Transaction
Portfolio Pulse from Benzinga Newsdesk
Consolidated Communications Holdings, Inc. (CNSL) is urging shareholders to vote for a proposed acquisition by Searchlight Capital Partners and British Columbia Investment Management Corporation. The offer is $4.70 per share, a 70% premium over the April 12, 2023 share price, and a 218% increase from the initial bid. The transaction is seen as the best risk-adjusted outcome for shareholders, providing a certain value and transferring execution risks to the acquirers. The Special Meeting to vote on the transaction is scheduled for January 31, 2024.
December 27, 2023 | 1:09 pm
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POSITIVE IMPACT
CNSL is advocating for shareholder approval of its acquisition at $4.70/share, highlighting a substantial premium and risk mitigation as key benefits. The board's endorsement suggests confidence in the deal's value to shareholders.
The board's strong recommendation and the significant premium offered are likely to be viewed positively by shareholders, potentially leading to a short-term increase in CNSL's stock price as the vote approaches. The premium over the current and historical stock prices, along with the board's rationale that the acquisition offers a financially compelling and certain value, suggests a positive impact on the stock price if the transaction is viewed favorably by the market.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100