GCI to Purchase Wireless Subscriber Base from Alaska Communications
December 04 2014 - 4:05PM
Business Wire
Alaska Communications Also Sells its
Minority Interest in its Partnership with GCI
Alaska Communications System Group, Inc. (NASDAQ:ALSK) and
General Communication, Inc. (GCI) (NASDAQ:GNCMA) have signed
definitive agreements for Alaska Communications to sell its
wireless subscriber base and its 33 percent interest in its
partnership in the Alaska Wireless Network, LLC (AWN) to GCI for
$300 million.
Under the terms of the agreements and upon close:
- GCI will assume Alaska Communications’
wireless subscriber base. Services will be uninterrupted and will
continue to operate statewide and nationally.
- As of September 30, 2014, Alaska
Communications had approximately 109,000 wireless customers.
- GCI will purchase Alaska
Communications’ 33 percent interest in AWN and will then own 100
percent of AWN. Upon close, these agreements will eliminate future
preferred and partnership distributions that otherwise would have
been due under the original AWN agreements. Up until close Alaska
Communications will continue to receive preferred distributions
from AWN.
- The two companies have agreed upon a
service transition plan for Alaska Communications customers. This
will ensure a seamless continuation of service as they are
transitioned to GCI.
- Alaska Communications wireless
customers will continue to enjoy service on Alaska’s only statewide
network.
- The transaction is targeted to close in
the first quarter, 2015, and is subject to certain closing
conditions.
“We are pleased to reach these agreements that allow each
company to pursue its own strategy,” said Alaska Communications
President and CEO Anand Vadapalli and GCI President and CEO Ron
Duncan in a joint statement. “We are committed to a seamless
service transition for wireless customers. Alaskans will continue
to benefit from a vibrant competitive market for wireless
services.”
Vadapalli added, “We appreciate the loyal support of our
wireless customers and thank our wireless team who consistently
deliver excellent customer service. We will continue to provide
customers with this same level of quality service and support
during the transition of wireless services.”
Duncan concluded, “We welcome wireless subscribers from Alaska
Communications and are committed to providing them the latest
technologies and superior customer service on Alaska’s only
statewide network.”
GCI and Alaska Communications will notify customers with further
details regarding this transition and customers do not need to take
any action at this time.
About the Alaska Wireless Network (AWN)
AWN was formed in July 2013 and combined the wireless network
assets of Alaska Communications and GCI. The transaction was
designed to position the two companies to better compete against
national wireless carriers. Under terms of the agreement, GCI
retained two-thirds ownership and Alaska Communications retained
one-third ownership.
About Alaska Communications
Alaska Communications (NASDAQ: ALSK) is a leading provider of
advanced broadband and managed service solutions for businesses and
consumers in Alaska. The Company operates a highly reliable,
advanced statewide data and voice network with the latest
technology and the most diverse undersea fiber optic system
connecting Alaska to the contiguous United States. For more
information, visit www.alaskacommunications.com or
www.alsk.com.
About GCI
GCI is the largest Alaska-based and -operated, integrated
telecommunications provider, offering wireless, voice, data, and
video services statewide. Learn more about GCI at
www.gci.com.
Forward-Looking Statements
This joint release includes certain "forward-looking
statements," as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs as well as on a number of assumptions
concerning future events made using information currently available
to management. Readers are cautioned not to put undue reliance on
such forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors, many of which are outside GCI’s or Alaska Communications’
control. For further information regarding risks and uncertainties
associated with either company's business, please refer to either
GCI's or Alaska Communications' SEC filings.
Alaska Communications
Contacts:Media:Heather Cavanaugh,
907-564-7722Director, Corporate
CommunicationsHeather.Cavanaugh@acsalaska.comorInvestor
Relations:Tiffany Dunn, 907-564-7556Manager, Board and Investor
Relationsacsinvestors@acsalaska.comorGCI
Contacts:Media:David Morris, 907-265-5396VP,
Corporate Communicationsdmorris@gci.comorInvestor
Relations:Tom Chesterman, 907-868-1585VP,
Financeinvestor@gci.com
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