Brookfield Infrastructure to buy Cincinnati Bell in deal valued at US$2.6 billion

TORONTO – Brookfield Infrastructure and its partners will acquire Ohio-based phone company Cincinnati Bell Inc. in a friendly deal valued at US$2.6 billion, including debt, the companies announced Monday.

“This investment represents an opportunity for Brookfield Infrastructure to acquire a great franchise and leading fiber network operator in North America,” Sam Pollock, Brookfield Infrastructure’s CEO, said in a statement.

“Cincinnati Bell is a great addition to our data infrastructure portfolio and we expect it will contribute strong utility-like cash flows with predictable growth.”

Cincinnati Bell’s board of directors has unanimously approved the Brookfield offer but the deal requires shareholder and regulatory approval.

“The transaction strengthens our financial position, enabling accelerated investment in our strategic products that is not presently available to Cincinnati Bell as a standalone company,” said Leigh Fox, Cincinnati Bell’s CEO.

“With Brookfield Infrastructure’s support, we will be better positioned to deliver next generation, integrated communications for our customers through an expanded fiber network.”

The Cincinnati-based telecom company’s shareholders will get US$10.50 per share cash, which is 36 per cent above Friday’s closing stock price.

In return, Brookfield will acquire a network that services residential and enterprise customers in Ohio, Kentucky, Indiana and Hawaii.

Brookfield Infrastructure currently has a portfolio of assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia and Europe.

It is a publicly traded affiliate of Toronto-based Brookfield Asset Management.

This report by The Canadian Press was first published Dec. 23, 2019.

Companies in this story: (TSX:BIP.UN, TSX:BAM.A)