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Archive for Saturday, March 4, 2006

Everest to sell telecom unit

March 4, 2006

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Electricity and gas utility Aquila Inc. said Friday its Everest Global Technologies Group Inc. subsidiary agreed to sell its telecommunications business to a unit of New York-based Seaport Capital Partners III LP for $85.7 million in cash.

The sale covers Lenexa-based Everest Global Technologies Group's cable, broadband and telephone services that are provided to more than 34,000 residential and business customers in the Kansas City area.

Aquila said the deal was part of its plan to divest non-strategic assets. The transaction is expected to close in the second or third quarter, subject to conditions including Seaport Capital's completion of financing.

Aquila will use some of the transaction proceeds to pay down Everest debt. Aquila's stock closed down 2 cents to $3.88 on the New York Stock Exchange.

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