Windstream Holdings has received regulatory approval from all of the state public service commissions to spin off its real estate investment trust (REIT).
The approvals for the spinoff, which has been named Communications Sales & Leasing, Inc., would allow the company to move forward as planned.
“Securing these regulatory approvals is an important milestone in our work and affirms the compelling benefits of the transaction to consumers and businesses,” said Windstream director Francis X. “Skip” Frantz, who will serve as chairman of CS&L’s board. “The spinoff remains a strategic priority for Windstream and with the state regulatory approval process complete, we are focused on executing the final steps of the transaction.”
The REIT will be operational by the end of March.
Shareholders will vote Feb. 20 at a called meeting on whether to approve a 1-for-6 reverse stock split and an amendment to subsidiary Windstream Corp.’s certificate of incorporation, which will convert Windstream Corp. into a limited liability company.
Windstream will retain 19.9 percent of the new company’s shares, with the remaining shares going to stockholders.