Windstream Holdings Inc. of Little Rock has sold certain fiber assets in Minnesota to Arvig Enterprises Inc., a Minnesota-based provider of telecommunications and broadband services, in an all-cash transaction valued at $49.5 million.
Windstream has also entered into a definitive agreement to sell additional fiber assets in Nebraska to Arvig for $11 million. The Nebraska sale is expected to close in the first quarter of 2019.
As part of the transactions, the company said it will establish a fiber network relationship with Arvig, allowing Windstream to use the assets to continue to sell its products and services in Minnesota and Nebraska.
“These transactions monetize latent dark fiber assets in Minnesota and Nebraska, lower capital requirements in each state and allow us to focus on our core network offerings with minimal change to our operations going forward. The structure also sets a roadmap for future fiber monetization across our footprint,” CFO and Treasurer Bob Gunderman said in a news release.
Windstream executives have mentioned on several earnings calls that the company intended to monetize unused fiber assets.
Arvig Vice President and COO David Arvig said in the release, “Expanding our broadband footprint is core to our strategic priorities and bolsters our fiber assets throughout Minnesota and across the Midwest. The additional Nebraska transaction will provide a critical link for our network beyond Minnesota supporting our continued growth throughout the region.”
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