The boards of Geneseo Communications, Inc., Cambridge Telcom, Inc. and Henry County Telephone Company have approved a binding agreement to sell the companies to Indiana-based Joink, LLC, pending shareholder and regulatory approval.
Geneseo Communications President and CEO Mike McClain confirmed the agreement Tuesday in a statement to The Geneseo Current, following an Aug. 11 letter sent to shareholders.
“A letter was mailed to shareholders of Geneseo Communications, Inc., Cambridge Telcom, Inc. and Henry County Telephone Company stating that their boards have approved a binding agreement to sell to Joink, LLC, pending shareholder and regulatory approval, which is expected to be forthcoming before the end of the year,” McClain said.
McClain said the companies expect the transition to have little immediate effect on employees or customers if the sale receives the necessary approvals.
“At closing, we expect a smooth transition for both employees and customers,” McClain said. “Our companies will continue operating with the same local team and same local offices that provide exceptional customer service today. There will be no change to the customer service, billing, or how the customer reaches us.”
McClain said the companies view the transaction as an opportunity to bring additional investment to the Geneseo area while maintaining local operations.
“Joink has a strong track record of investing in the communities it serves, and we see this as an opportunity for growth by bringing Joink’s significant financial resources to the Geneseo area while keeping decisions close to home,” McClain said.
The Aug. 11 shareholder letter obtained and reviewed by The Current provides additional information about how the transaction developed. The letter states that the board worked with an experienced investment banking firm and contacted “numerous potential buyers” before selecting the proposed transaction with Joink.
According to the letter, the board considered the proposed price and other factors and determined the transaction was in the best interests of the companies and their shareholders.
Joink is a telecommunications and technology provider headquartered in Terre Haute, Indiana, with operations in Indiana and Illinois.
Shareholders are expected to receive additional information soon. McClain said confidential details of the proposed transaction will be mailed to shareholders in a proxy statement within the next 30 days.
The Aug. 11 letter similarly advised shareholders that proxy materials would provide additional information about the transaction and instructions for voting. Shareholders were told not to submit stock certificates or take other action until those materials are received.
Financial terms of the agreement have not been publicly disclosed.
Geneseo Communications has deep roots in the area, with Geneseo Telephone Company tracing its history to 1905. The proposed transaction also includes Cambridge Telcom, Inc. and Henry County Telephone Company, expanding the significance of the sale beyond Geneseo itself.
Joink has also been contacted by The Current for a written statement regarding the transaction.
The Current will continue to update this story as additional information about the sale and regulatory approval process becomes available.