(AP) Cox Enterprises Inc. said Thursday it plans to sell 13.5 million Class A shares of cable television unit Cox Communications Inc. to private investors in a deal worth about $533 million.
Privately held Cox Enterprises, which owns several media operations, including the Atlanta Journal-Constitution, declined to reveal the two investors buying the stake. The sale, about 2% of the company, will reduce Cox Enterprises’ ownership share to 62%.
Funds from the sale, expected to close Monday, will be used for general corporate purposes, the company said.
“This sale represents an opportunity to unite our balance sheet needs with meeting an expressed demand from the investors for a larger stake in Cox Communications,” said James C. Kennedy, Cox Enterprises’ chairman and chief executive.
Cox Communications, with about 6.2 million customers in 20 states, is the nation’s fifth-largest cable company. Its shares were down 48 cents to $39 Thursday afternoon on the New York Stock Exchange.