Telecommunications-focused investment bank Waller Capital Corp. reported that its client RFB Cellular Inc. has entered into an agreement with Dobson Cellular Systems Inc. to sell RFB’s Michigan wireless assets that include PCS licenses covering 1.3 million potential customers for $26 million. RFB is currently operating under Chapter 11-bankruptcy protection and last month sold its Fresno, Calif., PCS license to Leap Wireless International Inc. for $27.1 million.
As part of the Dobson deal, Waller said RFB has filed papers with its bankruptcy court requesting certain auction procedures to facilitate the submission of higher and better offers from additional parties. The request is expected to be approved in late October with a possible auction taking place by the end of the year.
“Both the Michigan and Fresno sales processes generated substantial interest from the wireless and financial communities,” said Bruce Conklin, chief responsible officer for RFB. “RFB considers these transactions to be successful outcomes for the estate and looks forward to obtaining bankruptcy court approval for the sale of Michigan assets to Dobson or to a qualified overbidder.”
Dobson announced earlier this year the acquisition of NPI-Omnipoint Wireless L.L.C.’s network assets in northern Michigan, which included a GSM-based network covering approximately 1 million pops and serving 35,000 subscribers, for $28 million. The deal added to Dobson’s previous holdings in Michigan that included cellular licenses serving rural service areas 1, 3, 5 and 10 in the northern part of the state.
