Macquarie, GCM to acquire Alaska Communications for $300m
Macquarie Capital and GCM Grosvenor, have entered into a definitive agreement to acquire Alaska Communications Systems Group, for approximately $300 million.
Macquarie Capital (Macquarie) and GCM Grosvenor (GCM), through its Labor Impact Fund, will make cash offer including debt, resulting in Alaska Communications Systems Group (Alaska Communications), becoming a privately held company.
Under the terms of the deal, expected to close in the second half of 2021, an affiliate of Macquarie and GCM will acquire all the outstanding shares of Alaska Communications common stock for $3.00 per share.
This share price represents a premium of close 57% more than the closing per share price of $1.91 as of 2 November 2020 and a premium of approximately 50.8% more than the 30-day volume weighted average price as of 2 November 2020.
"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,” said David W. Karp, chairman of the board of directors, at Alaska Communications.
“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."
Subject to approval by Alaska Communications' stockholders, regulatory approvals and other customary closing conditions, the company will hold a Special Meeting of Stockholders to vote on the proposed merger.
Additionally, Alaska Communications also holds a 30 period in which it can “solicit superior proposals from third parties” up until 3 December 2020.
"This transaction with Macquarie Capital and GCM represents an exciting opportunity to enhance our financial position and expand our resources to better serve our customers. 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,“ added Bill Bishop (pictured), president and chief executive officer of Alaska Communications.
“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 utilise our superior customer service and fibre-based network solutions in providing industry-leading telecommunications products and services. Finally, GCM’s Labor Impact Fund provides strategic value to our business both through its experience in the telecommunications sector and in fostering partnerships with a unionised workforce. We firmly believe this transaction will allow us to enhance our expanded fibre network services and drive long-term value for our customers in Alaska and the Lower 48."