United States Cellular Corporation (NYSE: USM) enjoyed strong stock gains Friday, on the news the company has entered into an agreement with Verizon Communications Inc. (NASDAQ: VZ) to sell a portion of the Company's retained spectrum licenses for total consideration of $1.0 billion. Additionally, UScellular has entered into agreements with two other mobile network operators for the sale of other selected spectrum licenses. The transactions are part of the objective UScellular announced last May, to opportunistically monetize the spectrum that was not included in the proposed sale to T-Mobile.
"We are pleased that significant value for a portion of the remaining licenses will be realized," said CEO Laurent C. Therivel,"and, importantly, that these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country. We are continuing the process to opportunistically monetize the remaining spectrum assets not included in today's announcement."
UScellular reached an agreement with Verizon to sell 663 million MHz POPs of its Cellular (850 MHz) spectrum licenses as well as 11 million MHz POPs of its AWS and 19 million MHz POPs of its PCS licenses for a total of $1.0 billion. The purchase price is payable in cash and subject to certain potential adjustments specified in the purchase agreement. The transaction with Verizon is subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.
USM shares popped $5.90, or 10%, to $64.61, while those for VZ inched up eight cents to $43.94.
