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Ares management sells $395 million in Frontier Communications stock

Published 12/12/2024, 04:20 PM
FYBR
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Ares Management (NYSE:ARES) LLC, a significant shareholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), recently sold a substantial block of shares. According to a Form 4 filing with the Securities and Exchange Commission, Ares Management disposed of 11.5 million shares of Frontier Communications at a price of $34.37 per share. The transaction, completed on December 10, 2024, amounted to a total value of approximately $395.26 million. The sale comes amid FYBR's strong market performance, with the stock gaining over 55% in the past year and 35% in the last six months, according to InvestingPro data.

Following this sale, Ares Management continues to hold a significant number of shares in Frontier Communications, with 23,922,768 shares remaining in their portfolio. The transaction reflects Ares Management's ongoing portfolio management strategy, as they remain a major stakeholder in the telecommunications company, which currently has a market capitalization of $8.63 billion and operates with a substantial debt burden. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report about FYBR's financial health and market position.

In other recent news, Frontier Communications' shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), a key step towards Frontier becoming a wholly owned subsidiary of Verizon. This approval comes after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, alongside a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Opposition from Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier, was also noted. In addition to these developments, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. Meanwhile, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are recent developments in the companies mentioned.

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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