Cincinnati Bell said it has agreed to purchase Hawaiian Telcom in a cash and stock deal valued at about $650 million.
According to Cincinnati Bell, Hawaiian Telcom shareholders can opt to receive either $30.75 per share in cash and 1.6305 shares of Cincinnati Bell stock or a combination of $18.45 per share in cash and 0.6522 shares of Cincinnati Bell stock for every share of Hawaiian Telcom they own. The price represents a 23.7% premium to Hawaiian Telecom’s share price over the past 20 days.
In early trading Monday, Hawaiian Telcom stock soared nearly 20% ($4.81 per share) to $29.25 each. It was priced at $28.60 each (up 17%) at about 10:12 a.m. on Monday. Cincinnati Bell shares fell nearly 10% ($1.85 each) to $17.50 in early trading before rising slightly to $17.70 each (down 8.5%) by 10:07. a.m.
Cincinnati Bell has also signed a definitive agreement to acquire OnX Enterprise Solutions, a technology services and solutions provider in North America and the United Kingdom, for $201 million in cash. The transactions advance Cincinnati Bell’s refined strategy to focus on growing its business in two distinct areas: network communications and enterprise IT services.