Diversified energy company NUI exits the telecom business with the sale of subsidiary NUI Telecom in a management buyout

December 16, 2003

1 Min Read

BEDMINSTER, N.J. -- NUI Corporation (NYSE:NUI) today announced it has reached an agreement to sell its telecom subsidiary, NUI Telecom, Inc., to a management buyout group led by Richard M. Boudria, NUI Telecom's President and Chief Executive Officer, supported by third-party financing. With the sale, NUI exits the telecommunications business.

NUI will receive $2 million in cash and a $4 million dividend, subject to post-closing adjustments, for NUI Telecom. NUI Telecom also assumes the liabilities associated with NUI Telecom's acquisition of Norcom Agency Services, Inc.

Mark Abramovic, NUI President, said, "Because of our desire to continue to narrow our focus to more core activities, we announced last July our intention to sell NUI Telecom. The completion of the sale of our telecommunications subsidiary represents NUI's exit from a non-core business activity, simplifying our operations and organizational structure. We believe that structure also will make NUI more appealing to prospective buyers considering a purchase of NUI."

Added Boudria, "The purchase of NUI Telecom by management ensures continuity of service for our customers and leaves in place an organization and foundation that positions us well for future growth and profitability. In addition, it allows for a seamless transition for our customers."

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