NEW YORK (CNNfn) - Adelphia Communications Corp. announced Friday it will acquire Century Communications Corp. for $5.2 billion.
Under the deal, Century's Class A Common stockholders will receive 0.6122 shares of Adelphia Class A Common Stock plus $9.16 per share in cash. Century's Class B Common stockholders will receive $11.81 in cash and 0.6360 shares of Adelphia Class A Common Stock for each share Class B share they own.
The value of the deal includes the assumption of $1.6 billion of debt. Figures were determined by Thursday's closing prices.
Upon completion of the merger, former Century stockholders will own about 48.7 million shares of Adelphia's Class A Common Stock.
The deal, expected to close in the third quarter of 1999, creates the fifth largest operator of cable television systems in the United States, serving about 4.7 million subscribers. The newly-formed entity is expected to have revenues of about $2 billion.
Century's shareholders have yet to approve the merger, which will also be subject to regulatory approvals.
Shares of Adelphia (ADLAC) fell 1/4 to 57-1/8 Thursday, while Century (CTYA) stock jumped 1/8 to 35-3/8.