CENTEL TO SELL OHIO TELEPHONE OPERATIONS TO CENTURY
CENTEL TO SELL OHIO TELEPHONE OPERATIONS TO CENTURY CHICAGO, Nov. 21 /PRNewswire/ -- Centel Corp. (NYSE: CNT) announced
today that it is has reached a definitive agreement to sell its Central Telephone Company of Ohio subsidiary to Century Telephone Enterprises Inc. (NYSE: CTL) for $135 million, which includes $120 million in cash and $15 million in assumed debt.
The companies expect to complete the transaction, pending regulatory approvals, in the second quarter of 1992. The Ohio operation, which has approximately 265 employees and reported revenues of nearly $40 million last year, serves some 63,000 access lines in Lorain and nearby communities along Lake Erie west of Cleveland. Century is retaining all of the employees of Centel of Ohio. The acquisition will increase Century's access lines served by 20 percent to more than 376,000. "We are pleased that we have been able to reach an agreement with Century, a company with a tradition of providing quality service and commitment to its communities and employees," said John P. Frazee Jr., chairman and chief executive officer of Centel Corp. "This sale is in line with our stated strategy to operate telephone properties in states where we serve more than 100,000 access lines." "This acquisition will represent a significant growth opportunity for our company in the north central United States and complements our operations in Wisconsin and Michigan," said Glen F. Post III, president and chief operating officer of Century. "This is reflective of our long-term strategy of growth through selective acquisitions that meet our criteria of quality operations near our existing service areas. We are confident that Centel's experienced work force in Ohio will further enhance our reputation for providing quality telephone service." In addition to providing local telephone service in Ohio, Centel also operates cellular communications franchises in Toledo, Youngstown/Warren, Lima and Mansfield. The cellular properties are not affected by the proposed sale. Besides Ohio, Centel, which had revenues of $1.15 billion in 1990, also provides local exchange telephone service through 1.5 million customer access lines in six other states and operates cellular communications franchises in 41 other metropolitan markets. Century Telephone Enterprises Inc., headquartered in Monroe, La., is a diversified telecommunications company with operations in 15 states and is the 16th largest local exchange telephone company and cellular operator in the United States. -0- 11/21/91 /CONTACT: William K. White of Centel Corp., 312-399-2735; Glen F. Post III of Century, 318-388-9500/ (CNT CTL) CO: Centel Corp.; Century Telephone Enterprises Inc. ST: Illinois, Louisiana IN: TLS SU: TNM SH -- NY013 -- 5727 11/21/91 09:01 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 21, 1991|
|Previous Article:||DELL REPORTS RECORD INCOME AND SALES IN THIRD FISCAL QUARTER; CONTINUES TO GAIN SHARE IN U.S. AND INTERNATIONAL MARKETS|
|Next Article:||STANDARD LOGIC REPORTS PROFIT AND HIGHER REVENUES IN 1991|