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Thread: What happens to Shentel?

  1. #1
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    What happens to Shentel?

    Shentel has been building out the Sprint network like crazy in my area. It has been night and day since they took over our market.

    They do an excellent job with coverage, marketing and stores.

    I hope T-Mobile keeps them on-board somehow. T-mobile should give them all their towers and stores in the Mid to Northeast to manage.


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    Last edited by techfranz; 02-15-2020 at 06:23 PM.

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    I've read, but don't quite understand, that they're in "the catbird seat" in this merger. It has something to do with some clauses in their agreement with Sprint that protects their financial position in such an eventuality. Maybe someone else can explain it better.

    P.S. I found this: https://www.fiercewireless.com/wirel...-mobile-merger
    Donald Newcomb

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    What happens to Shentel?

    Quote Originally Posted by DRNewcomb View Post
    I've read, but don't quite understand, that they're in "the catbird seat" in this merger. It has something to do with some clauses in their agreement with Sprint that protects their financial position in such an eventuality. Maybe someone else can explain it better.

    P.S. I found this: https://www.fiercewireless.com/wirel...-mobile-merger
    Wow, they will have the option to be bought out by T-Mobile or buy out out the T-Mobile subscribers with financing by T-Mobile. The 3rd option is that they decline to do either and T-Mobile is obligated to shut down their network in Shentel Territory in two years. That 3rd option is a bit confusing. I wonder if that means Shentel becomes their own carrier all by themselves.
    Or option 3 could mean that they be their own carrier, decline the purchase and buy options and remain a T-Mobile Affiliate?

    Anyway I expect Shentel won’t venture out on their own, but will negotiate a good deal with the new T-Mobile. I personally hope they buy the subs. We would have an awesome T-Mobile network experience if they did that.

    From the Article:
    “If they do decide to buy our wireless business, there is a formula that you provide to our shareholders, a very handsome return. If they choose not to buy our wireless business, Shentel will remain an affiliate of the New T-Mobile and for the next 180 days, we have the option to acquire the T- mobile customers and that work in our 7 million POPs service area at 75% of the value of the customers and asset as determined by the merger value,” MacKenzie said during the call, according to a Seeking Alpha transcription of the event. “If we can’t finance the purchase, then the New T-Mobile will finance the purchase at their cost of capital for up to five years. If Shentel decides not to buy T-Mobile network and customers, then the new T-Mobile must turn off the T-Mobile network that overlaps Shentel within two years.”



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    Shentel, has revealed that it’s in negotiations with T-Mobile to continue on as an affiliate of T-Mo post-merger. Shentel has been operating as an affiliate of Sprint since 1995 and has more than 1 million wireless customers in states like Virginia, West Virginia, Maryland, and Pennsylvania.

    In a filing with the SEC, Shentel explains that its affiliate agreement gives its 90 days to negotiate with T-Mobile about staying on as an affiliate. If no agreement is reached between the two, then T-Mobile will have 60 days to decide if it wants to purchase the assets of Shentel’s wireless business for 90% of its entire business value.

    https://www.lightreading.com/4g-3g-w.../d/d-id/758803

    (what is strange to me is Shentel only wanting to sell it's business for 90% of their value... seems like a strange negotiating tactic)

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    Quote Originally Posted by Qt0 View Post
    .....(what is strange to me is Shentel only wanting to sell it's business for 90% of their value... seems like a strange negotiating tactic)
    It's a contractual stipulation. We don't know all the details of what's in the contract between Sprint and Shentel.

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    Quote Originally Posted by Qt0 View Post

    (what is strange to me is Shentel only wanting to sell it's business for 90% of their value... seems like a strange negotiating tactic)
    No it's selling just the wireless part of their business at 90% of their entire business value:

    "T-Mobile would then have another two months to purchase Shentel's wireless business at 90% of the "entire business value," "

    https://www.lightreading.com/4g-3g-w.../d/d-id/758803

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