Benzinga | Jul 2, 2021 08:21AM EDT

Shenandoah Telecom Declares Special Dividend On Closing Wireless Asset Sale

* Shenandoah Telecommunications Co's (NASDAQ:SHEN) board declared a special dividend of $18.75 per share, leading to the total shareholder payout of $936.6 million.

* The special dividend is payable on Aug. 2 to shareholders of record on Jul. 13. The ex-dividend date will be Aug. 3.

* Shenandoah expects $19.6 million of the special dividend to be reinvested in shares under the Dividend Reinvestment Plan. The reinvested dividends will help to purchase shares.

* Shenandoah recently divested its Wireless assets and operations to T-Mobile US Inc (NASDAQ:TMUS) for $1.94 billion. It repaid debt worth $684 million with the sales proceeds. The sale marked the company's transition from mobile wireless services provider to mobile wireless services via cable, fiber, and fixed wireless broadband networks.

* Price action: SHEN shares traded higher by 11.80% at $54.97 in the premarket session on the last check Friday.