NTELOS (Nasdaq: NTLS) has officially spun off its wireline business, which will now be known Lumos Networks, so it can exclusively focus its attention on being a wireless-only service provider.
Lumos Networks began trading on the Nasdaq on Nov. 1 under the ticker symbol LMOS. In addition, NTELOS common stock is beginning trading on a post 1-for-2 reverse stock split basis.
NTELOS separated the company through a tax-free divided involving the distribution of all Lumos Networks common stock held by NTELOS to NTELOS stockholders.
Under the terms of the transaction, NTELOS conducted a 1-for-2 reverse stock split of NTELOS common stock prior to the distribution of Lumos Networks common stock to NTELOS stockholders. Also, NTELOS stockholders got one share of Lumos Networks common stock for every one share of NTELOS common stock they hold.
Despite the new name, Lumos Networks will continue to focus on delivering traditional residential (broadband and TV) and business (Ethernet) services. And while it does not have a wireless unit anymore, the addition of assets like FiberNet will enable it to continue to compete for wireless backhaul deals with wireless operators in its territory, including its former parent NTELOS.
- see the separation release
- and the Lumos trading release
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