Waynesboro-based nTelos Holdings Corp. plans to spin off its wireline division as Lumos Networks Corp. on Oct. 31.
Just before the spinoff, nTelos will conduct a one-for-two reverse stock split of its common stock. Company stockholders of record on Oct. 24 will receive one share of Lumos Networks common stock for every share of nTelos common stock they hold after the stock split.
The nTelos board of Directors has set post-separation dividend policies for nTelos and Lumos Networks.
Under the policy, nTelos stockholders who keep their Lumos Networks shares will receive, in the aggregate, the same quarterly cash dividend rate of 28 cents per share that existed before the spin-off (or 56 cents per share on a post reverse stock split basis).
After the reverse stock split and the distribution of the Lumos Networks stock, nTelos expects to pay a dividend at an initial rate of 42 cents per share per quarter, payable in January 2012.
Lumos Networks is currently expected to pay a dividend at the initial rate of 14 cents per share per quarter, payable in January 2012.
“It is a truly exciting time for our wireline business,” Mike Moneymaker, Lumos Networks’ president said in a statement. “Opportunities in newly acquired markets, recent expansion of our fiber network and continued growth in demand for high speed data services combine with the separation to position us well for the future.”
Lumos Networks is expected to begin trading on Nasdaq under the ticker symbol LMOS.
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