Investment firms Macquarie Capital and GCM Grosvenor will acquire Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) for $300 million in cash. The transaction will take Alaska Communications private. The parties expect the deal to close in the second half of 2021.
The approximately $300 million price includes debt. Under the terms of the agreement, an affiliate of Macquarie and GCM will acquire all the outstanding shares of Alaska Communications common stock for $3.00 per share in cash. This represents a premium of approximately 57 percent over the closing per share price of $1.91 on November 2, 2020, the last trading day prior to the date the merger agreement was executed. It also represents a premium of approximately 50.8 percent over the 30-day volume weighted average price as of November 2, 2020.
David Karp, Chairman of the Alaska Communications Board of Directors, said, “After carefully evaluating Macquarie Capital’s and GCM’s offer, we are confident that this transaction is in the best interest of Alaska Communications and its stockholders. 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.”
Alaska Communications President/CEO Bill Bishop said the deal will enhance the company’s financial position and allow the company to expand its fiber network services in Alaska and other states. “Macquarie Capital has extensive experience navigating the complexities and issues associated with public-to-private transactions, as well as addressing the various regulatory regimes associated with communications infrastructure transactions. It also has deep telecommunications expertise and a strong track record of investing in capital intensive businesses, which will be critical as we deliver on our strategy to utilize our superior customer service and fiber-based network solutions in providing industry-leading telecommunications products and services.”
The transaction is subject to the approval of Alaska Communications’ stockholders, regulatory approvals and other customary closing conditions. Equity financing will be provided by Macquarie Capital and GCM. Alaska Communications’ Board of Directors approved the agreement and recommended that stockholders approve the deal, too. Stockholders will vote on the transaction in a special meeting, with the date to be determined.
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