Maine regulators approve FairPoint sale
File Photo / Tim Greenway
Mike Reed, FairPoint Communications' Maine state president. The Maine Public Utilities Commission unanimously approved on Wednesday the $1.5 billion sale of FairPoint to Consolidated Communications Inc.
The Maine Public Utilities Commission has unanimously approved the $1.5 billion sale of FairPoint Communications Inc. to Consolidated Communications Inc.
Wednesday’s decision, reported by several news outlets, comes after the Illinois-based buyer agreed to invest at least $52.2 million on facilities and infrastructure in Maine should the merger get the green light from federal and state regulators outside of Maine.
The company’s three-year investment plan calls for $17.4 million a year in annual spending over the next three years to build out FairPoint’s broadband networks and upgrade speeds.
Public Advocate Tim Schneider said the deal is good for Maine because the network being acquired by Consolidated serves as the backbone for communications across the state, the Associated Press reported.
Regulators in Vermont and New Hampshire have yet to vote on the merger, which has unions worried about post-merger staffing plans.
Consolidated Communications said last week it remains on track to close the FairPoint acquisition by mid-2017 as it posted first-quarter revenue of $169.9 million, down from $188.8 million a year earlier.
FairPoint (Nasdaq:FRP) announced in late March that its shareholders had approved the merger with Consolidated Communications Holdings Inc. (NASDAQ: CNSL) in an all-stock transaction valued at approximately $1.5 billion, including debt.
Since 2008, it has invested more than $50 million to extend broadband service in Maine, which is now available in more than 88% of its service territory in the state. In 2016, FairPoint's network investments impacted more than 60,000 locations in Maine, many of which are in rural areas, with new or upgraded service.
The company's 2017 projects are expected to impact an additional 30,000 locations in the state through its own investments as well as with support from Phase II of the Federal Connect America Fund.
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