By Stephen Nakrosis
Shares of Consolidated Communications Holdings Inc. were trading higher after hours on Monday following news that a subsidiary will sell limited partnership interests in five wireless partnerships.
Consolidated Communications said its subsidiary, Clio Subsidiary LLC, has agreed to sell the limited partnership interests in five wireless partnerships managed by Cellco Partnership, which does business as Verizon Wireless, to Cellco for an aggregate purchase price. of $490 million.
The deal is expected to close by the end of this year, Consolidated Communications said.
As of 6:08 p.m. ET, shares of the company were trading up 16.16% at $7.69 per share. The volume at the time exceeded 63,000 shares. The stock ended the day’s regular session with a gain of 0.30%, closing at $6.62 per share.
Bob Udell, the company’s President and CEO, said, “Selling these wireless investments is part of our long-term strategy as we continue our transformation into a fiber-focused broadband company. “. He added that “proceeds from these transactions will directly support our fiber expansion plan, our key strategic priority.”
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