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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