Shenandoah Telecom Inc. (NASDAQ: SHEN) stock gained by 1.4% at last close whereas the SHEN stock-price surges by 11.81% during pre-market trading. Shenandoah Telecommunications Company (Shentel) provides broadband services to consumers in the Mid-Atlantic United States via its high-speed, state-of-the-art cable, fiber optic, and fixed wireless networks.
What is happening?
Shenandoah Telecommunications Company’s Board of Directors announced a special dividend of $18.75 per share on all outstanding shares of Shentel common stock. The special dividend will be paid on August 2, 2021, to stockholders who were on the books on July 13, 2021, at the close of business. The ex-dividend date will be August 3, 2021, the first working day after the payment date, as per NASDAQ guidelines.
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Approximately $19.6 million of the special dividend is expected to be reinvested in SHEN common stock under SHEN’s Dividend Reinvestment Plan, according to SHEN. During the thirty days after the dividend payment date, the reinvested dividends are intended to be utilized to acquire shares of SHEN common stock through market transactions.
Before any reinvestments via SHEN’s Dividend Reinvestment Plan, the total distribution to Shentel stockholders will be around $936.6 million.
President and CEO Christopher E. French commented,
After the successful sale of their Wireless assets and operations to T-Mobile, they are happy to deliver approximately $936 million in value to their shareholders. They are thrilled about the future prospects of their broadband-centric firm as they conclude their chapter as a supplier of mobile cellular services. Also, with SHEN’s unique, integrated cable, fiber, and fixed wireless broadband networks, they have the ability to build shareholder value by delivering the fastest internet services in their areas.
T-Mobile USA, Inc. has purchased Shenandoah Telecommunications Company’s wireless assets and operations. SHEN got $1.94 billion in cash, which included a $60 million settlement of waived management costs by Sprint Corporation, a T-Mobile indirect subsidiary, and was net of some transaction charges.$684 million of the proceeds were utilized to completely settle all existing debt and end the facility and related interest rate swap contracts, as required by the conditions of its 2018 credit facility.