Ares management sells Frontier Communications shares worth $6.6 million

Published 29/11/2024, 22:54
Ares management sells Frontier Communications shares worth $6.6 million

Ares Management (NYSE:ARES) LLC, along with its affiliated entities, has reported the sale of shares in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR) totaling approximately $6.6 million. The transactions occurred on November 26 and 27, with shares sold at prices ranging from $34.8039 to $34.8522. The sale comes amid FYBR's strong performance, with the stock up over 35% in the past six months and trading near its 52-week high of $39.21.

Following these transactions, Ares Management and its affiliates now hold 37,347,708 shares of Frontier Communications. The sales were conducted by several entities under the Ares umbrella, including Ares Management Holdings L.P., Ares Holdco LLC, and others, each of which may be deemed to share beneficial ownership of the securities. According to InvestingPro data, FYBR operates with a significant debt burden, with total debt of $11.6 billion and a debt-to-equity ratio of 2.29.

The shares are held indirectly, as noted in the accompanying footnotes, which detail the complex ownership structure involving various investment funds and holding companies managed by Ares. The transactions were executed on behalf of multiple funds, including ACOF VI Frontier AIV and ASOF Frontier AIV entities. For deeper insights into FYBR's valuation and financial health, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial metrics.

Ares Management LLC and its affiliates continue to maintain a substantial position in Frontier Communications, reflecting their ongoing involvement in the telecommunications company, which currently has a market capitalization of $8.67 billion.

In other recent news, Frontier Communications' shareholders have approved the company's merger with Verizon Communications (NYSE:VZ), marking a significant step in the process. Despite this, the merger has faced opposition from investment firms Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier. In the midst of these developments, Frontier saw a 2% revenue increase in Q2 2024, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company has been downgraded from 'Strong Buy' to 'Market Perform' by Raymond (NS:RYMD) James due to concerns about the shareholder vote. Frontier was also awarded seven ConneCTed Communities grants and secured over $23 million in grants to expand high-speed fiber broadband service. Meanwhile, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are the recent developments for both Frontier and Verizon Communications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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