Iowa Telecommunications Services has reached an agreement to acquire New Ulm Telecom ‘s ownership interests in En-Tel Communications, SHAL and SHAL Networks for $1.7m. New Ulm Telecom is based in New Ulm, Minnesota.
New Ulm Telecom said that the sale of these minority owned investments will allow it to monetise its non-core investments. In addition, this transaction is expected to release New Ulm from about $5.7m in loan guarantees to RTFC for loans to SHAL and En-Tel Communications. The sale is expected to close in the fall of 2009.
SHAL owns and leases a 2,500-mile fibre-optic network throughout Minnesota that provides access to transport facilities. En-Tel Communications provides local voice, DSL and digital video services to customers in central Minnesota. Upon closing, Iowa Telecom will own all of the outstanding equity in the SHAL entities and substantially all of En-Tel Communications.
Iowa said that this is the fourth acquisition in Minnesota over the past 18-months, following Bishop Communications, Sherburne Tele Systems and WH Comm.
