New Ulm Telecom, Inc. Announces the Acquisition of a One-Third Ownership in Hector Communications Corporation
November 03 2006 - 4:29PM
Business Wire
New Ulm Telecom, Inc. (OTCBB:NULM) announced today that it has
completed its acquisition of a one-third ownership in Hector
Communications Corporation (AMEX:HCT) through a recently formed
corporation, Hector Acquisition Corporation, that is owned equally
by New Ulm Telecom, Inc., Blue Earth Valley Communications, Inc.
and Arvig Enterprises, Inc., all of which are independent local
exchange carriers. Each of the owners will provide management and
other operational services to Hector Communications Corporation and
its subsidiaries. New Ulm Telecom, Inc.�s President and CEO, Mr.
Bill Otis, has been named Chairman of the Board and President of
Hector Communications Corporation. Hector Acquisition Corporation
entered into a merger agreement to acquire all of the outstanding
shares of Hector Communications Corporation for $36.40 per share on
June 27, 2006. New Ulm Telecom, Inc., as a one-third owner of
Hector Acquisition Corporation, previously announced the entry into
a merger agreement with Hector Communications Corporation in its
8-K filed on June 27, 2006. Hector Communications Corporation is a
telecommunications holding company which through its subsidiaries
provides telecommunications services in rural communities in
Minnesota, Wisconsin and North Dakota. At June 30, 2006 Hector
Communications Corporation served approximately 29,300 telephone
access lines, 8,000 cable television subscribers and 11,700
Internet customers, as well as having minority ownership interest
in other telecommunications companies. New Ulm Telecom, Inc. is a
telecommunications provider serving rural communities in Minnesota
and Iowa. At June 30, 2006, New Ulm Telecom, Inc. served
approximately 16,300 telephone access lines, 4,800 cable television
subscribers and 5,400 Internet customers. New Ulm Telecom, Inc., as
it has previously announced in its October 10, 2006 8-K, used
approximately $18 million of the proceeds it received from the sale
of Midwest Wireless Holding in connection with its purchase of its
one-third ownership of Hector Communications Corporation.
CAUTIONARY STATEMENT The Private Securities Litigation Reform Act
of 1995 contains certain safe harbor provisions regarding
forward-looking statements. These statements may include, without
limitation, statements with respect to anticipated future operating
and financial performance, growth opportunities and growth rates,
acquisition and divestiture opportunities, business strategies,
business and competitive outlook and other similar forecasts and
statements of expectation. Words such as expects, anticipates,
intends, plans, believes, seeks, estimates and should, and
variations of these words and similar expressions, are intended to
identify these forward-looking statements. Such forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from such statements. Due to
the uncertainties listed and the fact that any forward-looking
statements made by New Ulm Telecom, Inc. and its management are
based on estimates, projections, beliefs and assumptions of
management, they are not guarantees of future performance. Except
as required by law, New Ulm Telecom, Inc. disclaims any obligation
to update or revise any forward-looking statements based on the
occurrence of future events, the receipt of new information, or
otherwise. New Ulm Telecom, Inc. (OTCBB:NULM) announced today that
it has completed its acquisition of a one-third ownership in Hector
Communications Corporation (AMEX:HCT) through a recently formed
corporation, Hector Acquisition Corporation, that is owned equally
by New Ulm Telecom, Inc., Blue Earth Valley Communications, Inc.
and Arvig Enterprises, Inc., all of which are independent local
exchange carriers. Each of the owners will provide management and
other operational services to Hector Communications Corporation and
its subsidiaries. New Ulm Telecom, Inc.'s President and CEO, Mr.
Bill Otis, has been named Chairman of the Board and President of
Hector Communications Corporation. Hector Acquisition Corporation
entered into a merger agreement to acquire all of the outstanding
shares of Hector Communications Corporation for $36.40 per share on
June 27, 2006. New Ulm Telecom, Inc., as a one-third owner of
Hector Acquisition Corporation, previously announced the entry into
a merger agreement with Hector Communications Corporation in its
8-K filed on June 27, 2006. Hector Communications Corporation is a
telecommunications holding company which through its subsidiaries
provides telecommunications services in rural communities in
Minnesota, Wisconsin and North Dakota. At June 30, 2006 Hector
Communications Corporation served approximately 29,300 telephone
access lines, 8,000 cable television subscribers and 11,700
Internet customers, as well as having minority ownership interest
in other telecommunications companies. New Ulm Telecom, Inc. is a
telecommunications provider serving rural communities in Minnesota
and Iowa. At June 30, 2006, New Ulm Telecom, Inc. served
approximately 16,300 telephone access lines, 4,800 cable television
subscribers and 5,400 Internet customers. New Ulm Telecom, Inc., as
it has previously announced in its October 10, 2006 8-K, used
approximately $18 million of the proceeds it received from the sale
of Midwest Wireless Holding in connection with its purchase of its
one-third ownership of Hector Communications Corporation.
CAUTIONARY STATEMENT The Private Securities Litigation Reform Act
of 1995 contains certain safe harbor provisions regarding
forward-looking statements. These statements may include, without
limitation, statements with respect to anticipated future operating
and financial performance, growth opportunities and growth rates,
acquisition and divestiture opportunities, business strategies,
business and competitive outlook and other similar forecasts and
statements of expectation. Words such as expects, anticipates,
intends, plans, believes, seeks, estimates and should, and
variations of these words and similar expressions, are intended to
identify these forward-looking statements. Such forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from such statements. Due to
the uncertainties listed and the fact that any forward-looking
statements made by New Ulm Telecom, Inc. and its management are
based on estimates, projections, beliefs and assumptions of
management, they are not guarantees of future performance. Except
as required by law, New Ulm Telecom, Inc. disclaims any obligation
to update or revise any forward-looking statements based on the
occurrence of future events, the receipt of new information, or
otherwise.
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