Ares Management (NYSE:ARES) LLC, a significant stakeholder in Frontier Communications (OTC:FTRCQ) Parent Inc. (NASDAQ:FYBR), has reported the sale of shares valued at approximately $19.9 million. The transactions, dated December 6 and December 9, involved the sale of 575,000 shares at prices ranging from $34.6148 to $34.6367 per share. The sale comes as FYBR's stock has surged nearly 35% over the past six months, according to InvestingPro data, which also indicates the stock is currently trading above its Fair Value.
Following these sales, Ares Management and its affiliated entities, collectively referred to as the ASOF and ACOF funds, retain ownership of 35,422,768 shares in the telecommunications company. These transactions were carried out indirectly through various ASOF II Frontier Holdings entities. InvestingPro analysis reveals that Frontier operates with a significant debt burden and has not been profitable over the last twelve months. InvestingPro subscribers have access to 8 additional key insights about FYBR's financial health and market position.
The sales were disclosed in a Form 4 filing with the Securities and Exchange Commission, detailing the transactions and the remaining shareholdings. Ares Management, based in Los Angeles, continues to hold a substantial interest in Frontier Communications, a Dallas-based provider of telecommunications services with a market capitalization of $8.62 billion.
In other recent news, Frontier Communications' shareholders have approved a merger with Verizon Communications (NYSE:VZ), a development that marks a significant milestone in the telecom industry. Frontier's Q2 2024 earnings report showed a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company's stock was downgraded from 'Strong Buy' to 'Market Perform' by Raymond (NS:RYMD) James due to concerns about the shareholder vote. This move was amidst opposition from Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
In addition to the merger, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. On the other hand, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are recent developments in the companies mentioned.
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