U.K. MSO ntl Inc. said Monday that it has sold off its broadcast division.
A consortium led by Macquarie Communications Infrastructure Group will pay $2.3 billion for the unit, subject to a final working capital adjustment.
ntl intends to use up to $895 million of the proceeds to repurchase its common stock and about $940 million to repay debt outstanding under its $4.09 billion credit facility. The company will retain the balance for general corporate purposes.
“The closure of this transaction enables ntl to concentrate all of its resources on growing and improving its U.K. communications and content-distribution business,” ntl CEO Simon Duffy said in a prepared statement.
“Our decision to launch a stock-repurchase program, together with our intention to use future surplus cash flow after normal investment requirements to make additional stock repurchases over time, demonstrates the company's commitment to maintaining both a clear focus on its existing lines of business and an efficient capital structure,” he added.