|
Adelphia buys cable rival
|
 |
February 23, 1999: 6:54 a.m. ET
$2.1 billion acquisition will bolster cable giant's subscriber base
|
NEW YORK (CNNfn) - Cable television operator Adelphia Communications Corp. announced Tuesday it will acquire privately-held FrontierVision Partners L.P. for $2.1 billion in cash, debt and stock.
Under the deal, Adelphia will pay $550 million in cash, 7 million shares of Adelphia Class A common stock and assume $1.11 billion of debt. The agreement, subject to the customary closing conditions, is expected to close in September.
Prior to closing the deal, Coudersport, Pa.-based Adelphia (ADLAC) will sell about $750 million of convertible preferred stock and Class A common stock to the public and Chairman and Chief Executive John Rigas' family.
About $550 million of the funds will be used to fund the cash portion of the FrontierVision acquisition, while the remaining $200 million will be used to reduce debt.
Cable television firm FrontierVision will become an unrestricted subsidiary under the agreement and no changes to the amount of debt outstanding for FrontierVision is anticipated.
The purchase will add 702,000 basic cable subscribers to Adelphia's existing base of 2.36 million owned and managed cable subscribers.
About half of FrontierVision's customers are located near Adelphia's existing operations in New England and Virginia. The remaining customers will form a new cluster for the firm in the Ohio/Kentucky region.
Shares of Adelphia closed 2-7/8 higher at 61-5/8 Monday. 
|
|
|
|
|
|
Adelphia
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
