Sunshine PCS says that it has entered into an agreement with Cingular Wireless in which Cingular will acquire three licenses in Florida for US$13.75 million. The licenses are for spectrum in markets where Cingular currently has voice and data operations. Under terms of the deal, Cingular would pay US$13.75 million in cash, and obtain FCC authorization to operate on 15 MHz of broadband PCS (1900 MHz) spectrum in the following markets: Tallahassee, Panama City and Ocala. Sunshine PCS and Cingular also entered into other commercial arrangements to facilitate service in these markets.
The sale requires approval by the shareholders representing a majority of the voting power of all outstanding shares of Sunshine PCS. In addition, completion of the sale is subject to the consent of the Federal Communications Commission to the transfer of the licenses.
In connection with the transaction, Sunshine PCS has reached an agreement with Lynch Interactive Corporation, which owns all of the outstanding shares of the three series of Preferred Stock of Sunshine PCS, to acquire those shares for a total of approximately US$7.2 million. Sunshine PCS also has reached an agreement with the holder of its 3,069,313 shares of Class B Common Stock to reacquire such shares for US$0.20 per share. The acquisition of both the Preferred Stock and Class B Common Stock would coincide with the sale of the licenses to Cingular.
With regard to the remaining sale proceeds, Sunshine PCS is in the process of evaluating all of its alternatives and will consider all options with regard to their potential use."
Posted to the site on 21st August 2003
Posted to: www.cellular-news.com/story/9563.php