Categories: World News

T-Mobile to offload wireline business to Cogent, expects $1 billion pre-tax charge


T-Mobile US, Inc. said that it had agreed to sell its wireline business to Cogent Communications Holdings, Inc. in a deal that would also see Cogent provide some services to the carrier for a fee.

T-Mobile said it expected to record a pre-tax charge of about $1 billion in the third quarter of 2022 to cover the carrying value of the wireline business and a liability for the contractual payments of the transaction.

Cogent will acquire T-Mobile’s fiber and related assets and certain liabilities associated with the business, helping it bolster its offering to consumers and enterprises, it said in a statement.

Once the transaction is closed, the parties will enter into a separate agreement pursuant to which Cogent will offer certain services to T-Mobile for $700 million, to be paid in tranches.

The deal will go through a newly formed direct subsidiary of Cogent, which said it did not plan to issue new debt or equity to finance the acquisition.

Cogent added that the deal was not expected to be dilutive to its existing stockholders and that the company would continue to maintain its current dividend plan.

FacebookTwitterLinkedin




Source link

Tags: #suggest2u

Recent Posts

Russia-Ukraine war: List of key events, day 1,033

Here are the key developments on the 1,033rd day of Russia’s invasion of Ukraine.Here is the situation on Monday, December… Read More

4 hours ago

Small plane crashes into Brazilian city, killing all 10 people on board

CNN  —  A small plane has crashed into an urban center in the southern Brazilian city of Gramado, killing all… Read More

16 hours ago

Will the Christmas market attack divide Germans further over immigration? | Crime

German authorities say the suspect supports a right-wing party.German authorities say the psychiatrist accused of a ramming attack in Magdeburg… Read More

16 hours ago

China says US ‘playing with fire’ by giving Taiwan more military aid

Beijing calls on the US to stop ‘dangerous moves’ that ‘undermine peace and stability’ in the Taiwan Strait.China has warned… Read More

21 hours ago

Russia-Ukraine war: List of key events, day 1,032

Here are the key developments on the 1,032nd day of Russia’s invasion of Ukraine.Here is the situation on Sunday, December… Read More

1 day ago

Inside the Final Days of the Assad Regime in Syria

As rebels advanced toward the Syrian capital of Damascus on Dec. 7, the staff in the hilltop Presidential Palace prepared… Read More

2 days ago

This website uses cookies.