Citizens Utilities to Separate Its Telecommunications Businesses and Public Services Businesses Into Two Publicly Traded Companies.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--May 18, 1998-- Newly Formed Telecommunications Company See telecom company. to be Among Nation's Fastest Growing Integrated Communications Providers Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZN, CZNPr) announced today that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the separation of the Company's telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. businesses and public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. businesses into two stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." , publicly-traded companies. Upon separation, Citizens' telecommunications businesses, which include an 83% interest in Electric Lightwave Light in the infrared, visible and ultraviolet ranges, which falls between x-rays and microwaves. Wavelengths are between 10 nanometers and one millimeter. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ELIX) as well as interests in other telecom properties, will constitute one of the nation's fastest growing integrated communications providers. Citizens' public services businesses, consisting of natural gas distribution, electric distribution, water distribution and wastewater treatment facilities in ten states, would continue to be operated as Citizens Utilities, as they successfully have been for over 50 years. Subject to the receipt of necessary regulatory approvals, the Company intends to establish and transfer to a new company all of its telecommunications businesses including Electric Lightwave. The separation is expected to be carried out through a distribution of the stock of the new company to Citizens' shareholders and is intended to be tax-free to Citizens and its shareholders for federal income tax purposes. Dr. Leonard Tow, chairman and chief executive officer of Citizens, said that, "the separation of Citizens' telecommunications businesses and public services businesses is being made in recognition of the different investment features, valuation criteria, capital structures, dividend policies, customer requirements and regulatory concerns associated with each of the respective businesses. We believe that Citizens' telecommunications businesses and public services businesses will be better able to pursue their own strategies and compete more effectively as separate companies." Tow went on to say that, "the separation will strengthen both businesses and enable each of them to take full advantage of opportunities to enhance value. We believe that the separation is in the best interests of the Company's security holders, customers and employees". Commenting on the two businesses post separation, Tow said, "the newly formed telecommunications company will be among the nation's fastest growing integrated communications providers with strengths in voice, data and internet services. With Electric Lightwave, one of the nations fastest growing competitive local exchange carriers serving approximately seventy-five communities throughout the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century , as its growth engine, the new telecommunications company is well positioned to take advantage of the rapidly expanding market for data and the internet. Linked to Electric Lightwave's exceptional growth prospects will be substantial local exchange operations that now serve approximately 900,000 telephone access lines. The significant cash flow generated from these operations will enable the new telecommunications company to aggressively and successfully pursue all of its growth opportunities." "Citizens Utilities will continue to operate its geographically diverse public service operations with a customer base of about 850,000. This well balanced base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army , combined with its competitive management culture, will assure steady earnings and cash flow growth for the Company." Dr. Tow stated that, "the decision to separate Citizens' telecommunications businesses and public services businesses was reached after extensive evaluation of alternatives by the Company's management and Board of Directors in consultation with investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and and legal counsel. This review encompassed a broad range of strategic, financial, legal, regulatory and competitive considerations. Management and the Board believe that the separation of Citizens' telecommunications businesses and public services businesses into two stand-alone, publicly-traded companies will result in a significantly improved market valuation for Citizens' assets." The separation plan is expected to be implemented within one year. The Company will shortly announce its selection of investment advisors to assist in the implementation of the separation plan. Citizens Utilities (NYSE: CZN, CZNPr) provides telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. and public services including natural gas distribution, electric distribution, water distribution and wastewater treatment services to approximately 1.8 million customers in 21 states. Citizens owns 83% of Electric Lightwave, Inc. (NASDAQ:ELIX) and has a significant investment in Centennial Cellular Corp. (NASDAQ:CYCL). For more information on Citizens, please visit its web site at http://www.czn.net CONTACT: Citizens Utilities, Stamford Robert J. DeSantis Chief Financial Officer 203/614-5052 E-mail: rdesanti@czn.com or Alan Oshiki , Assistant Vice President 203/614-5629 E-mail: aoshiki@czn.com or Brigid M. Smith, Assistant Vice President 203/614-5042 E-mail: smith@czn.com |
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