American Broadband to buy Margaretville Telephone Co.
By Brian Sweeney
The Margaretville Tele-phone Co. Inc. (MTC), a corporate and civic leader throughout the region since 1916, will be purchased by American Broadband Communications LLC, it was announced last week. The new owner is based in Charlotte, N.C. and specializes in acquiring telecommunications firms with fewer than 5,000 lines.
MTC has long been a business pillar in the community. The company has been a staunch supporter for all types of community events, both financially and in terms of supplying volunteer manpower.
Larry Roadman, chairman and CEO of MTC, said in a prepared statement, “The agreement with American Broadband is the culmination of a process we began to explore our strategic alternatives. In selecting American Broadband, we have strongly addressed the customer, employee and shareholder interests and have partnered with a company that has an impressive track record of serving communities like ours.”
Doug Hinkley, president and chief operating officer, said the public will probably not notice any operational changes from the sale. He noted that current employees will keep their positions.
He noted that it’s important for a small company to have access to capital and the sale made sense.
“We have been working toward this for a couple of years. It’s taken us this long to find a suitable company. I think it’s a good opportunity for the longevity of the company. They’ll do a good job and give us the resources to keep building the company,” Mr. Hinkley explained.
The closing of the transaction is subject to regulatory approval and other customary closing conditions. The deal is expected to close by the end of the year.
Terms of the cash transaction were not released. The sale had to win the approval of MTC shareholders.
American Broadband currently owns three small telecommunications in Missouri, Nebraska and Alaksa. The companies total 26,000 access lines, 10,000 cable subscribers and 8,500 high-speed data subscribers.
John Duda, executive vice president and chief operating officer of American Broad-band, is looking forward to a seamless transition.
“MTC has a history of providing great service. They have a great network and have done very well with their infrastructure. We would continue to enhance that from a technology standpoint,” he noted.