NEW YORK-Price Communications Corp., New York, announced Oct. 22 it has reached a definitive agreement to sell for $25 million the GA-1 rural service area that was owned by Palmer Wireless Inc, which Price recently purchased. The sale is subject to Federal Communications Commission approval.
“We sold it to Michael Azeez, who heads Unitel in Atlantic City (N.J.) and likes to buy stand-alone RSAs,” said Robert Price, chairman of Price Communications Corp.
The GA-1 RSA does not abut the cluster owned by Fort Meyers, Fla.-based Palmer, which is now called Price Communications Wireless. The RSA covers a population of about 200,000, of which about 35,000, “cannot be serviced because of the mountains in northern Georgia,” Price said.
“We will use the $25 million to retire debt. (The RSA sale) was a big plus for us.”
The GA-1 RSA will have cash flow of approximately $1 million this year and would have needed considerable capital expenditures, according to Price.
