Shareholders of CenturyLink and Level 3 Communications have approved the companies’ proposals towards a joint merger.
CenturyLink, which delivers communications and data services and Level 3 Communications, a global communications provider, both revealed talks to form a joint merger in the business telecoms market in October last year.
In October 2016, the combined merger was valued at approximately $34 billion and is to increase CenturyLink’s network by 200,000 route miles of fibre.
Following this, a meeting between CenturyLink’s shareholders saw approximately 96.3 percent of votes casted to be in support of the proposal to issue CenturyLink’s common stock to Level 3 stockholders.
Meanwhile, another meeting between Level 3’s stockholders saw over 98.8 percent of the votes were also in favour of approving the merger agreement.
The companies also recently received approvals in Georgia and West Virginia, as well as clearances in Connecticut, Indiana and Louisiana. It is expected that they will receive the remaining state, federal and international approvals to complete the merger by the end of September 2017.
Glen F. Post, CEO and President, CenturyLink said: “The combination of CenturyLink and Level 3 will significantly improve our global network capabilities, creating a company with one of the most robust fibre networks in the world.
“This expanded network should allow us to bring substantial operational and service benefits to our enterprise customers, as well as an enhanced customer experience.”
Once the deal has been closed, Level 3 stockholders will receive $26.50 per share in cash and 1.4286 shares of CenturyLink stock for each Level 3 share they own.
CenturyLink shareholders will take hold of approximately 51 percent of the company, while Level 3 will own approximately 49 percent.
Both companies which are currently based in the US will have the combined company headquartered in Monroe, and will also gain key operational presence in Colorado and the metropolitan area of Denver.