NTELOS completes spinoff of its wireline business Lumos Networks

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.  

For more:
- see the separation release
- and the Lumos trading release

Related articles:
NTELOS establishes $370M post-separation fund for Lumos Networks
NTELOS names wireline, FiberNet units "Lumos Networks"
nTelos breaks up wireless and wireline holdings into separate units
nTelos completes FiberNet acquisition

Suggested Articles

Veego Software, an Israel-based startup that uses AI to detect and fix problems in connected homes, announced its Home Scoring solution on Thursday.

IDC has put a several numbers behind the impact of the coronavirus on China's ICT market, but the impact will largely be limited to Q1.

Nokia is using machine learning-based artificial intelligence (AI) to identify potential issues at railroad crossings in real time.