NEW ULM TELECOM, INC. (OTCMKTS:NULM) Files An 8-K Entry into a Material Definitive AgreementITEM 1.01
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On February 23, 2018, New Ulm Telecom, Inc. (“New Ulm”) announced that it had entered into a Stock Purchase Agreement dated February 22, 2018 to purchase Scott-Rice Telephone Company (“Scott-Rice”) from Allstream Business U.S., LLC, an affiliate of Zayo Group Holdings, Inc. (“Zayo”) for approximately $42 million in cash. New Ulm intends to finance the acquisition from existing capital resources and proceeds from a credit facility with its principal lender CoBank, ACB.
Scott-Rice provides phone, video and internet services with over 18,000 connections, serving the communities of Prior Lake, Savage, Elko and New Market, Minnesota.
The transaction is subject to customary closing conditions and regulatory approvals, but is not subject to New Ulm shareholder approval. The transaction has been unanimously approved by the Boards of Directors of New Ulm and Zayo. New Ulm expects the transaction to close during the second quarter of 2018.
ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS.(d) Exhibits Exhibit 99.1 New Ulm Telecom, Inc. Press Release dated February 23, 2018 regarding Stock Purchase Agreement to acquire Scott-Rice Telephone Company.
NEW ULM TELECOM INC ExhibitEX-99.1 2 exhibit99_1.htm EXHIBIT 99.1 Exhibit 99.1 Exhibit 99.1 FOR RELEASE: Immediate FROM: New Ulm Telecom,…To view the full exhibit click here
About NEW ULM TELECOM, INC. (OTCMKTS:NULM)
New Ulm Telecom, Inc. (NU Telecom) is a communications company. The Company offers a range of communications products and services. It operates through Telecom Segment. NU Telecom’s principal line of business is the operation of over five local telephone companies or incumbent local exchange carriers (ILEC) and the operation of over two local exchange carriers (CLEC) telephone companies. Its ILEC and CLEC businesses provide local telephone service and network access to other telecommunications carriers for connections to its networks. It also provides long distance service, broadband Internet access, video services, and managed and hosted solutions services. Its businesses provide Internet protocol television (IPTV), cable television services (CATV), Internet access services, including high-speed broadband access, and long distance service. It also installs and maintains communications systems to the areas in and around its service territories in southern Minnesota and northern Iowa.
