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Consolidated Communications (CNSL) Completes Surewest Acquisition; Updates on Shareholder Elections

July 2, 2012 4:49 PM EDT Send to a Friend
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) announced today that it has completed the previously announced acquisition of SureWest Communications, Inc. (Nasdaq: SURW), for approximately $324 million, exclusive of debt, based upon the closing price of Consolidated's common stock on June 29, 2012.

The average trading prices for the 20-day period ending two days before the closing date of the merger was $14.44. As a result, at the effective time of the merger, 50% of the shares of SureWest common stock (treating equity award shares as outstanding) converted into the right to receive $23.00 in cash, without interest, per share, for an approximate total of $170 million in cash, and each of the remaining shares of SureWest common stock converted into the right to receive 1.40565 shares of common stock of Consolidated, or an approximate total of 10,417,450 shares of the Consolidated common stock.

Consolidated also announced the preliminary results of elections made by SureWest shareholders and the preliminary effect of proration. Of the 14,776,178 shares of SureWest common stock and restricted stock units outstanding immediately prior to closing the merger, approximately
  • 956,183 shares were equity award shares, all of which were entitled to receive cash;
  • 10,094,049 shares, or 68.3 percent, elected to receive cash;
  • 1,369,712 shares, or 9.2 percent, elected to receive stock; and
  • 2,356,234 shares, or 15.9 percent, did not make an effective election.




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