Citizens Utilities will purchase equity stake in HTCC and provide management services.STAMFORD, Conn.--(BUSINESS WIRE)--May 18, 1995--Citizens Utilities ("Citizens") announced today its Agreement in Principle with Hungarian Telephone & Cable Corp. ("HTCC HTCC Hand Therapy Certification Commission HTCC High Temperature Cofired Ceramic HTCC Hindu Temple and Cultural Center HTCC Huntington Township Chamber of Commerce HTCC Hanford Training Coordinating Council ") pursuant to which the companies expect to contract for Citizens to provide telecommunications management services to HTCC and its subsidiaries. In a separate transaction, Citizens agreed to purchase 300,000 shares of HTCC Common Stock from Peter Klenner, presently the president, chief executive officer, chief financial officer and a director of HTCC. Klenner currently intends to remain a director of HTCC. Citizens will assist HTCC in hiring new operations and financial officers to replace Klenner. Citizens and HTCC also agreed to enter into a convertible loan agreement and an agreement whereby subject to HTCC stockholder approval Citizens would acquire options to purchase additional shares of HTCC voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the which if exercised, would permit Citizens to increase its common equity ownership of HTCC up to approximately 51% on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Dr. Leonard Tow, chairman and chief executive officer of Citizens, stated "These agreements open up important new opportunities for Citizens. After completion of construction, HTCC's exchanges will be able to serve approximately 100,000 households and businesses in parts of Hungary which today have only 3,500 access lines serving them. Satisfying the enormous demand backlog for modern telephonic communications in HTCC's franchise territories will make this venture beneficial for all parties." Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZNA, CZNB) is a diversified diversified (di·verˑ·s service company providing telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. , natural gas distribution, electric distribution, and water and wastewater treatment services to 1.4 million customers in 18 states. Citizens has a significant investment interest in Centennial Cellular Corp., a cellular telephone company, and owns Electric Lightwave Inc., a competitive telecommunications services provider operating in five major cities in 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 . CONTACT: Citizens Utilities, Stamford Brigid M. Smith, 203/329-5042 |
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