Liberty Interactive to buy Alaska-based telecom firm for $1.12 bln (updated)

Liberty Broadband

04/04/2017 14:51

(Adds details, background, shares) 
    April 4 (Reuters) - U.S. cable TV mogul John Malone's 
Liberty Interactive Corp said it would buy Alaska-based telecom 
services provider General Communication Inc  GNCMA.O  for $1.12 
billion in stock. 
    Liberty Interactive is currently structured into two 
tracking stocks - QVC Group  QVCA.O , its home-shopping 
business, and Liberty Ventures Group  LVNTA.O , which holds 
equity interests in Liberty Broadband Corp  LBRDA.O , Charter 
Communications Inc  CHTR.O , LendingTree Inc  TREE.O  and other 
companies. 
    Liberty Interactive, which will be renamed QVC Corp after 
the deal, said it would combine General Communication with 
Liberty Ventures and then split off the combined company to 
Liberty Ventures shareholders in a tax-free transaction. 
    The deal will eliminate the tracking stock structure, which 
Liberty Interactive said should make the new QVC Group eligible 
for inclusion in stock indexes. 
    Tracking stocks allow a company to offer a notional stake in 
one of its units without giving away control. 
    Liberty Interactive will hold a 77 percent equity interest 
and an 84 percent voting interest in the combined company, to be 
called GCI Liberty. 
    General Communication (GCI) shareholders will receive $32.50 
for each share, representing a premium of 58.1 percent to the 
stock's close on Monday.  urn:newsml:reuters.com:*:nBw5dkJbTa 
    GCI's shares were trading at $31.25, while Liberty 
Interactive's shares were up 3.2 percent at $20.62. 
    GCI Liberty is expected to trade on the Nasdaq. 
    Malone is known for striking complex deals and running 
companies with intricate structures. 
    GCI provides residential and business telecommunications 
services in Alaska. 
    Liberty Interactive, which split-off from Liberty Media in 
2013, owns interests in companies that are primarily engaged in 
video and digital commerce industries. 
    The split-off of Liberty Interactive's interest in GCI 
Liberty is expected to be completed by the first quarter of 
2018. 
 
 (Reporting by Aishwarya Venugopal in Bengaluru; Editing by 
Saumyadeb Chakrabarty) 
 ((Aishwarya.Venugopal@thomsonreuters.com; within U.S. 
+1-646-223-8780; outside U.S. +91 80 6749 1017; Reuters 
Messaging:  Aishwarya.Venugopal.thomsonreuters.com@reuters.net)) 
 
Keywords: GENERAL COMMUNICATION M&A/LIBERTY INTER