TULSA, Okla. (AP) — Leading energy company Williams Cos. announced Friday it will spin off affiliate Williams Communications to shareholders.
The Tulsa-based energy company said the move to spin off the communications company was a logical step to boosting value for shareholders.
On Friday, Williams' board announced that it planned to distribute about 400 million shares, or 95 percent of the Williams Communications common stock it owns, to holders of Williams common shares as a tax-free dividend.
Williams Communications doubled its revenue over the past year and completed a 33,000-mile fiber optic network connecting 125 cities a year earlier than planned.
The company transmits signals over its fiber optics for long-distance carriers, Internet providers, all major news and broadcast centers, more than 600 television stations and major sports venues.
"Given our revenue growth, our solid financing plan, our fully operational network and our stable customer base, this spinoff is the natural evolution of a business strategy begun in 1998, when we re-entered the telecommunications space," said Howard Janzen, president and chief executive of Williams Communications.
Janzen said the move would fortify the company's competitive advantage.
"The spinoff gives Williams Communications the best opportunity to strengthen its industry leadership and the ability to attract investors who value the vast potential of broadband," Janzen said.