Cincinnati Bell (CBB) - Get Report shares soared 35.6% to $10.46 Monday after the telecommunications company said it had agreed to be acquired by Brookfield Infrastructure Partners (BIP) - Get Report in a transaction valued at about $2.6 billion.
Under the terms of the agreement, shareholders will receive $10.50 a share in cash at the close of the transaction. The transaction price of $10.50 of Cincinnati Bell common stock represents a 36% premium to the closing per share price of $7.72 on Dec. 20 and an 84% premium to the 60-day volume weighted average price.
The transaction is expected to close before the end of 2020, the two companies said in a statement. The boards of both companies have approved the acquisition.
Brookfield Infrastructure shares finished down 2.5% to $48.36 on Friday
Cincinnati Bell owns and operates a data transmission and distribution network in Cincinnati and Hawaii, with a footprint of more than 1.3 million homes, delivering fiber broadband, video and voice services.
"The transaction strengthens our financial position, enabling accelerated investment in our strategic products that is not presently available to Cincinnati Bell as a standalone company," Leigh Fox, Cincinnati Bell's president and CEO. "This will allow us to drive growth and maximize value over the long term to the benefit of all our stakeholders."
Based in Hamilton, Bermuda, Brookfield Infrastructure Partners owns and operates utilities, transport, energy, and data infrastructure businesses.
The company's holdings include Brookfield Place in Lower Manhattan, formerly the World Financial Center.
In July, Brookfield Infrastructure Partners, Singaporean sovereign wealth fund GIC and other institutional partners announced they were taking freight railway owner and operator Genesee & Wyoming private in transaction valued at about $8.4 billion.