Phoenix’s Cable One to buy regional telecom firm Hargray in $2.2 billion deal

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Phoenix’s Cable One to buy regional telecom firm Hargray in $2.2 billion deal

Cable One Inc., the Phoenix, Arizona-headquartered American cable service and broadband communication provider employing about 2,750 people as of September 2020, had issued a statement late on Monday saying that the US cable provider would purchase about an 85 per cent stake in regional telecom firm Hargray in a $2.2 billion deal, muscling up its stance in the South-eastern US telecom market.

In factuality, Cable One Inc, which was called as Post-Newsweek Cable before 1997, previously owned a roughly 15 per cent stake in Hargray Communication that offers telecom services in the US state of Georgia, South Carolina, Alabama and Florida, while the latest deal in effect would provide Cable One Inc with a full-ownership of Hargray Communication.

On top of that, the announcement revealing Cable One Inc’s latest move to obtain a full-ownership of Hargray Communication, had triggered fresh response from investors in the US money markets, as the New York Stock Exchange-listed shares’ prices of the Arizona-based American telecom giant soared as much as 1 per cent in late-afternoon trading after treading water in most part of the day, while the shares’ prices of Cable One was last trading 0.11 per cent higher to $2,056.79 apiece.

Cable One Inc to purchase Hargray Communication in $2.2 billion deal

Apart from that, in a joint statement issued late in the day, Cable One Inc and Hargray Communication were quoted saying that the companies were expecting the deal to be closed by the second quarter of the year adding that the merger deal would help save the companies about an estimated $45 million from their annual expenses within three years of completing the deal.

Apart from that, Capital One and Hargray had also added in the statement that the leading US lenders and financial services providers such as Credit Suisse and JPMorgan Chase & Co have been the financial advisers and lead underwriters for Credit One on the deal.