Shentel falls after updating on T-Mobile affiliate talks
Apr. 07, 2020 5:54 PM ETShenandoah Telecommunications Company (SHEN)TMUS, SHENBy: Jason Aycock, SA News Editor13 Comments
- Shenandoah Telecom (NASDAQ:SHEN) wrapped the day down 5.6% after an update on its usual affiliate negotiations with Sprint, in the wake of Sprint's absorption into the new T-Mobile (NASDAQ:TMUS).
- Shentel has been a Sprint affiliate since 1995.
- With the merger's closure last week, T-Mobile delivered to Shentel a required notice of Network Technology Conversion, Brand Conversion and Combination Conversion, and their agreement provides for a 90-day period to negotiate terms to continue the deal.
- If the two haven't negotiated an agreeable deal, then T-Mobile has 60 days to purchase Shentel's wireless assets for 90% of entire business value; if T-Mobile doesn't exercise that option, Shentel has a 60-day period to purchase legacy T-Mobile network and subscribers in its area. And failing both those options, T-Mobile has to sell or decommission the legacy network.
- Talks are ongoing, Shentel says.