ANCHORAGE, Alaska, Dec. 4, 2014 /PRNewswire/ -- 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gci-to-purchase-wireless-subscriber-base-from-alaska-communications-300005202.html
SOURCE General Communication, Inc.; Alaska Communications
Systems Group, Inc.