Alaska Communications Agrees to $300 Million Takeover by Macquarie, GCM
November 03 2020 - 7:04AM
Dow Jones News
By Robb M. Stewart
Alaska Communications Systems Group Inc. has agreed to be bought
by investment firms Macquarie Capital and GCM Grosvenor in an
all-cash deal valued at about $300 million, including debt.
The takeover will result in the Alaskan broadband and
information technology-services company becoming privately held,
with the transaction expected to close in the second half of next
year.
Alaska Communications said Tuesday said the deal was an
opportunity for the company to strengthen its financial position
and better expand its resources.
"Macquarie Capital has a proven track record of delivering large
and complex transactions globally on accelerated timelines, and
GCM's Labor Impact Fund provides strategy driven capital that we
expect will generate real value for our customers and the Alaska
Communications workforce," David Karp, chairman of Alaska
Communications, said.
Under the terms of the agreement, an affiliate of Macquarie and
GCM will buy the outstanding shares of the company for $3 each in
cash, marking a roughly 57% premium to the closing price Monday.
The deal remains subject to the approval of Alaska Communications'
shareholders and regulators, the company said.
In premarket trading Tuesday, Alaska Communications' shares
rallied 64% after closing the previous session at $1.91, which was
up 7.9% so far in 2020.
TAR Holdings LLC, which owns about 8.8% of Alaska
Communications' stock, has agreed to support the offer from
Macquarie and GCM.
Alaska Communications said the transaction has fully committed
debt and equity financing, and equity financing will be provided by
Macquarie Capital and GCM. Alaska Communications' board has
unanimously approved the agreement, the company said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 03, 2020 06:49 ET (11:49 GMT)
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