Source: Domestic Section 214 Application

On September 23, 2010, Redwood County Telephone Company (Redwood), and its wholly owned subsidiary, Redwood Long Distance Company (Redwood LD), and Arvig Enterprises (Arvig) (together, Applicants) filed an application to transfer assets of Redwood and Redwood LD to Arvig.

Redwood, a Minnesota corporation, is a rural incumbent local exchange carrier serving the Belview, Echo, Falls Junction, Morgan, Red-Del, Seaforth, Vesta, Wabasso, Walnut Grove, and Wood Lake exchanges in south central Minnesota.  Redwood LD provides interstate services in these exchanges.  Arvig, a Minnesota corporation, provides incumbent LEC, competitive LEC, and long distance services in Minnesota.  Arvig owns a one third indirect interest in Hector Communications Corporation, the parent company of Sleepy Eye Telephone Company, an incumbent local exchange carrier.  Sleepy Eye Telephone Company serves the Sleepy Eye exchange, which is adjacent to the Redwood exchanges.  Arvig’s competitive LEC operations, which are provided by its subsidiary, Tekstar Communications, do not overlap with the Redwood exchanges.  Because of the incumbent LEC adjacent service areas the Applicants have identified, their application is not entitled to presumptive streamlined treatment.

Allen R. Arvig, a. U.S. citizen, owns 29.342% of Arvig, and his family members identified in the application, all U.S. citizens, each own less than 10 percent of the common stock of the company.  The Arvig Employee Stock Ownership Plan, a Minnesota entity, owns 36.706% of Arvig.

Pursuant to the terms of the proposed transaction, Redwood Tel Acquisition, Inc., a Minnesota corporation and wholly owned subsidiary of Arvig formed to acquire the assets of Redwood, will acquire all of Redwood’s assets except certain non-telecom assets.  Redwood LD Acquisition, Inc., a Minnesota corporation and wholly owned subsidiary of Arvig formed to acquire the assets of Redwood LD, will acquire those assets.  Applicants state that the proposed transaction is in the public interest because it will be transparent to customers who will benefit from Arvig’s financial, managerial, and technical resources in providing high quality, rural local exchange and long distance services.  It further states that the proposed transaction will not harm competition in the Redwood exchanges.  

Source: Domestic Section 214 Application

On September 23, 2010, Clements Telephone Company (Clements) and Arvig Enterprises (Arvig) (together, Applicants) filed an application to transfer control of Clements to Arvig.

Clements, a Minnesota corporation, is a rural incumbent local exchange carrier (LEC) serving the Clements exchange in south central Minnesota.  The company is owned by the following U.S. citizens and U.S.-based entity, who have family relationships with one another:  Linda B. Chambers (49.11%), Michael C. Chambers (0.11%), Lauren S. Beran Trust (12.45%), Mildred B. Sternick (33.33%), and Joe H. Beran (5.00%).  Arvig, a Minnesota corporation, provides incumbent LEC, competitive LEC, and long distance services in Minnesota.  Arvig owns a one third indirect interest in Hector Communications Corporation, the parent company of Sleepy Eye Telephone Company, an incumbent local exchange carrier.  Sleepy Eye Telephone Company serves the Sleepy Eye exchange, which is adjacent to the Clements exchange.  Arvig’s competitive LEC operations, which are provided by its subsidiary, Tekstar Communications, Inc., do not overlap with the Clements exchange.  Because of the incumbent LEC adjacent service areas the Applicants have identified, the application is not entitled to presumptive streamlined treatment.

 Allen R. Arvig, a. U.S. citizen, owns 29.342% of Arvig, and his family members identified in the application, all U.S. citizens, each own less than 10 percent of the common stock of the company.  The Arvig Employee Stock Ownership Plan, a Minnesota entity, owns 36.706% of Arvig.  The sole trustee of the Arvig Employee Stock Ownership Plan is Horizon Bank, N.A. d/b/a Horizon Trust and Investment Management, an Indiana entity.

Pursuant to the terms of the proposed transaction, Clements will become a direct, wholly owned subsidiary of Arvig.  Applicants state that the proposed transaction is in the public interest because it will be transparent to customers who will benefit from Arvig’s financial, managerial, and technical resources in providing high quality, rural local exchange and long distance services.