BETHESDA, Md.-Omnipoint Corp. has signed agreements to acquire East/West Communications Inc.
EWCM holds five licenses covering about 22.2 million pops in Los Angeles; Washington, D.C.; Sarasota, Fla.; Reno, Nev.; and Santa Barbara, Calif.
Omnipoint said it invested $3 million into EWCM today for 300,000 shares and simultaneously agreed to purchase all of the EWCM shares outstanding at closing for a new series E Omnipoint preferred stock, equivalent to a fixed 1.775 million Omnipoint shares.
At Oct. 21’s closing price of $71/OC share, the acquisition values the approximately 4.4 million non-Omnipoint shares of EWCM at $118 million or $5.32 per pop. Omnipoint also will assume about $15 million in debt to the Federal Communications Commission and will redeem about $8 million in EWCM preferred stock, for a total all-in cost of about $6.50 per pop.
