Shenandoah Telecommunications Company Issues Letter to Shareholders Regarding Special Dividend
Late last week, we made two significant announcements regarding your company and your investment in our stock. These announcements relate to the completion of the sale of our wireless assets and operations and the Board of Directors’ decision to declare a large special dividend. Both the sale and the special dividend are unique events in your company’s history, and I want to provide some additional information to you regarding these actions.
Following the completion of the sale, on
This special dividend is expected to be taxable as a qualified dividend subject to your holding period, and returns to you a significant portion of the value of your stock. The amount of the special dividend is much larger than prior annual dividends and may impact your tax planning. You are strongly encouraged to seek advice from your tax advisor regarding the potentially significant personal tax obligations.
For shareholders enrolled in the Dividend Reinvestment Plan as of the
The completion of the wireless sale and payment of the special dividend are significant milestones in the company’s almost 120 years – and we are excited to begin a new chapter in our long and successful history. Going forward, we are a broadband-centric company, focused on growing our cable, Glo fiber, Beam fixed wireless, and commercial fiber businesses. We believe we have the experience and expertise to continue to execute on our growth strategy, providing quality telecommunications services to our customers and the communities we serve.
On behalf of your Board of Directors, I appreciate your continued interest in and support of the company.
President and Chief Executive Officer
This release contains forward-looking statements about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the
Senior Vice President - Chief Financial Officer
Source: Shenandoah Telecommunications Co