KANSAS CITY, Mo. Dec. 28 -- KLT Telecom Inc., a unit of Kansas City Power & Light Co., will acquire a controlling interest in DTI Holdings Inc., in a purchase agreement worth $33.6 million in cash. KLT Telecom, which manages Kansas City Power & Light's equity holdings, is interested in DTI Holding's soon-to-be-constructed fiber optic network.
We see a significant opportunity to realize value for Kansas City Power & Light shareholders through the completion and marketing of this high-capacity network, said Greg Orman, chief executive and president of KLT Telecom.
KLT Telecom will acquire an additional 31.2 percent of DTI's fully diluted shares from the company's founder, Richard D. Weinstein, under the previously mentioned purchase agreement. Another 6 percent of the fully diluted shares will be acquired through a tender offer for DTI's outstanding warrants, which will result in KLT Telecom owning more than 80 percent of DTI's fully diluted shares.