Last independent subsea fiber in a Malone-dominated state
Tower monetization proves hidden asset value while irreplaceable cables and a 2028 PE put force a re-rating or sale
Management sold a small tower portfolio at roughly 23x EBITDA while the listed equity trades near 4x on the remainder, signaling a wide gap between private-market infrastructure pricing and public-market multiples. A new CEO with a Malone-era operating background and TSR-linked pay points to portfolio simplification and further asset sales. Two long-haul subsea fiber systems provide the only competitive route diversity into a full U.S. state where the dominant rival is consolidating every major cable, including a recent ~$310M purchase of the other significant regional system. A 9% compounding preferred with a July 2028 put, an aging controlling founder, and a sum-of-the-parts estimate ~40% above the quote—plus a near-5% yield—create a timed, under-followed value and strategic-takeout setup.
| Instrument | Side | Target | Reason |
|---|---|---|---|
| ATNI | Long | The June tower exit at a high-teens/low-20s EBITDA multiple on a thin slice of the business, against a single-digit multiple on the whole equity, is strong evidence that listed infrastructure is mispriced. The remaining crown assets are two subsea cables with replacement cost above market cap and no viable merchant-built substitutes since 2009, in a geography where the logical strategic buyer is already rolling up competing fiber. A hard July 2028 preferred put, governance aligned to TSR, and estate-planning pressure on a large insider block compress the timeline for monetization or a bid, while the dividend pays carry on a small, illiquid name where sum-of-the-parts already implies meaningful upside before any control premium. |
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