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Atlantic Tele-Network sells US Retail Wireless business to AT&T for USD780m cash
[January 23, 2013]

Atlantic Tele-Network sells US Retail Wireless business to AT&T for USD780m cash


Jan 23, 2013 (M2 EQUITYBITES via COMTEX) -- Atlantic Tele-Network Inc (ATN) (Nasdaq:ATNI), a telecommunications service provider to rural, niche and other under-served markets, announced on Tuesday an agreement to sell its domestic retail wireless business operated under the Alltel name by ATN's subsidiary, Allied Wireless Communications Corporation, to AT&T (NYSE:T) in an all-cash transaction valued at approximately USD780m.



Allied, based in Little Rock, Arkansas, serves approximately 585,000 customers in rural areas of the six states of Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho. It had generated revenues for the first nine months of 2012 of approximately USD350m and operating income of approximately USD34m, net of depreciation and amortization expense of approximately USD42m.

With the completion of the sale, Atlantic Tele-Network's businesses will consist of Commnet, serving rural communities primarily in the Southwest US; Sovernet, serving residential and business customers in New England; ION, serving rural communities in New York State; GT&T, serving Guyana; CellOne, serving Bermuda and Choice, Islandcom and Mio, serving portions of the Caribbean islands.


According to the company, the proceeds from the transaction will be used for new acquisition opportunities, a possible reduction in debt outstanding, investments in its existing lines of business and returns to shareholders through dividends.

This transaction, which is subject to customary closing terms and conditions and regulatory approval from the Department of Justice and the Federal Communications Commission, is expected to be completed in the second half of 2013.

Stephens Inc is serving as financial advisor to Atlantic Tele-Network and provided a fairness opinion for the transaction. Cleary Gottlieb Steen & Hamilton LLP and Jenner & Block are providing legal counsel.

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