Shareholders approve sale of Oxford Networks
Shareholders of the Lewiston-based Oxford Networks have approved the company’s sale to the Montreal private equity firm Novacap as the company prepares to release details of an expansion at its Brunswick data center.
Oxford Networks President and CEO Craig Gunderson told the Sun Journal that a large majority of each class of the company’s stockholders supported the sale during a vote at the company’s data center at Brunswick Landing, despite opposition from some common stock owners. Common shareholders Michael Jennings of East Winthrop and Robert G. Fuller Jr. of Atlantic Beach, Fla., have both been approved as intervenors when the sale goes before the Maine Public Utilities Commission.
According to a proxy statement acquired by the Bangor Daily News, Novacap would buy the telecommunications and IT firm for $18.5 million in cash and take on around $30 million in debt. Preferred shareholders would receive $17.3 million through the deal while the nearly 350 investors with the company’s common shares would only see returns if Novacap sells the company at a profit.
In addition to approval before the PUC, the deal also needs regulatory approval from the Federal Communications Commission and the Committee on Foreign Investment in the United States, the paper reported.
Company officials told the paper they plan to announce details of an expansion at its Brunswick data center in Brunswick next week.
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