Cox signs definitive agreement to sell cable systems to FrontierVision.ATLANTA--(BUSINESS WIRE)--Nov. 27, 1995--Cox Communications, Inc., today announced a definitive agreement to sell a number of its cable television systems in Ohio to FrontierVision Partners, L.P., a new entity formed to acquire and operate cable systems in targeted geographic regions of the United States. Closing of the transaction is expected during the second quarter of 1996, pending legal and regulatory approvals. The sale price was not disclosed. The transaction includes systems in the following western Ohio and Kentucky communities, representing a total of approximately 77,900 customers: Defiance, Ada, Minster, Wauseon, Bluffton, Versailles, Napolean, Carey, Ashland, Ironton Ironton, industrial city (1990 pop. 12,751), seat of Lawrence co., S Ohio, on the Ohio River; inc. as a city 1865. Chemicals, dyes, metal pipes, plastics, and iron products are manufactured, and some coal is mined. Ironton was a great iron-producing center during the Civil War. From c.1900 to 1910 the city had the largest blast furnace in the world, Big Etna, with a capacity of 100 tons per day., Chillicothe Hopewell Culture National Historical Park, containing prehistoric Native American burial mounds (see National Parks and Monuments, table). Chillicothe also has a state prison and a branch of Ohio Univ., Waverly, Washington Courthouse, Greenfield, Oakland, Beaver and Jasper. Cox Communications acquired the systems in February 1995 as part of its merger with Times Mirror Company. In making the announcement, Jimmy Hayes, Senior Vice President of Finance and Chief Financial Officer, said, "The reasons for this transaction are two-fold. First, we were required by the Federal Communications Commission to divest a number of these systems because they are part of the Grade B Contour of Cox Enterprises' television station, WHIO-TV, in Dayton, Ohio. Second, these systems do not fit with any of our major system clusters, and those clusters are our focus as we position Cox for the offering of new services, such as telephony. Proceeds from this sale will be used to pursue strategic acquisitions that enhance our existing clusters." John S. Koo, Senior Vice President and Chief Financial Officer of FrontierVision, said, "The addition of these Ohio systems to FrontierVision's Ohio cluster follows our strategic focus and, with over 115,000 customers within the state, enhances our presence in Ohio significantly." FrontierVision Partners, L.P. is a new entity formed to acquire and operate cable systems in targeted geographic regions of the United States. Major investors include J.P. Morgan Capital Corporation, Brown Brothers Harriman & Co. 1818 Fund II, Olympus Partners, and First Union Capital Partners. FrontierVision currently serves 94,000 customers in the states of Ohio and Maine. Cox Communications, Inc., (NYSE:COX) is the one of the nation's five largest multiple system operators, serving some 3.2 million customers. Cox is a fully integrated, diversified broadband communications company with interests in domestic and international cable distribution systems, programming, and telecommunications technology. CONTACT: Cox Communications, Inc. Ellen East, 404/843-5854 (Media) Jimmy Hayes, 404/843-5151 (Investors & Analysts) |
|
||||||||||||||

Printer friendly
Cite/link
Email
Feedback
Reader Opinion