Shenandoah To Sell Tower Portfolio For $310 Million Cash

(RTTNews) - Shenandoah Telecommunications Company (SHEN) said on Friday that it has entered into a deal with Vertical Bridge Holdco, LLC, to sell its tower portfolio and operations for $310.3 million in cash.

Christopher E. French, CEO of Shentel, said: "The proceeds from the sale of our Tower business will provide Shentel with additional growth capital to support the planned expansion of our Glo Fiber line of business to approximately 600,000 homes and business passings by the end of 2026."

Vertical Bridge will pay the purchase price on the date of the initial closing, which is expected in March 2024.

Shenandoah expects to pay up to $10 million in 2024 income taxes as a result of the gain on the sale after utilization of net operating loss carry forwards.

The Shentel tower portfolio being sold consists of 226 tower portfolio sites.

For 2023, the portfolio had posted an operating income of $9.5 million, on revenue of $18.6 million.