CNSL - Consolidated Communications holder Wildcat opposes $4.70 a share take private

2023-11-03 11:14:36 ET

Consolidate Communications ( NASDAQ: CNSL ) holder Wildcat Capital Management said it plans to vote against the company's announced $4.70 a share sale to Searchlight Capital Partners and British Columbia Investment Management.

Wildcat, CNSL's 5th largest holder, said it believes the takeover "severly undervalues'' the company's equity, according to a statement on Friday. Wildcat believes CNSL merits an enterprise value of approximately $4 billion, representing nearly a 30% premium to the $3.1 billion enterprise value implied by the proposed transaction at $4.70 a share.

Wildcat wants CNSL to terminate its sale if a higher price can't be negotiated. Wildcat intends to vote its shares against the proposed transaction and "strongly encourages" CNSL holders to do the same.

Searchlight is the beneficial owner of about 34% of Consolidated Communications' ( CNSL ) outstanding shares, as well as the holder of the company’s outstanding Series A perpetual preferred stock.

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