LUBBOCK, Texas -(Dow Jones)- AirGate PCS Inc. (PCSA) has agreed to be purchased by fellow Sprint PCS affiliate Alamosa Holdings Inc. (APCS) in a deal valued at $630 million, including debt.
In late November, Alamosa made its offer to purchase AirGate in a deal under which AirGate stockholders would receive 2.8 shares of Alamosa stock for each of their shares. AirGate had until Monday to accept the offer, Alamosa had said.
In a press release Wednesday, Alamosa said AirGate shareholders will receive 2.87 Alamosa shares for every share of AirGate common stock.
AirGate shareholders will also have the option to elect cash consideration, up to a total of $100 million, in place of Alamosa stock. The per-share cash consideration is based on the average closing price of Alamosa stock in the ten trading days prior to the completion of the transaction multiplied by 2.87.
Including the assumption of debt of about $238 million, the purchase price is about $630 million. The transaction is valued at $33 per AirGate share.
Shares of AirGate closed trading yesterday down 1.8%, or 61 cents, at $33.58, while Alamosa closed flat at $11.50.
The transaction is subject to customary regulatory review, approval by Sprint Corp. (FON) and approval of the shareholders of AirGate and Alamosa.
Both AirGate and Alamosa are Sprint PCS affiliates - companies that have agreed to expand Sprint's network in exchange for the right to use Sprint's spectrum and name.
The transaction is expected to close in the second quarter of 2005."
Posted to the site on 8th December 2004
Posted to: www.cellular-news.com/story/11407.php