General Communication, Inc. (NASDAQ:GNCMA) shares have surged 62% after the company announced it has entered into a definitive agreement where Liberty Interactive will buy the General Communication through a reorganization. The transaction entails certain Liberty Ventures Group assets and liabilities to be contributed to General Communication, Inc. (NASDAQ:GNCMA) in exchange for a controlling interest in General Communication.
Specifically, investors of General Communication will receive total consideration of $32.50 per share comprised of $27.50 per share in GCI Liberty Class A common stock and $5.00 in newly issued Series A preferred shares, based on a Liberty Ventures reference price of $43.65.
CEO Ron Duncan said,
This transaction with Liberty Interactive brings GCI back full circle, as GCI was part of TCI until 1986. We couldn’t think of a better owner, and look forward to being the largest operating asset within GCI Liberty. We will continue to run the company with our focus on providing the best value for Alaska customers, offering opportunities for our employees and investing wisely in the Alaska market.
What Does The Smart Money Sentiment Say?
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Of the 742 elite funds we track, 9 funds owned $20.02 million of General Communication, Inc. (NASDAQ:GNCMA) and accounted for 2.90% of the float on December 31, versus 7 funds and $14.15 million respectively on September 30.
The Bottom Line
General Communication, Inc. (NASDAQ:GNCMA) shares are higher today on the back of M&A with Liberty Interactive. For further reading, check out the article ‘10 Largest Telecom Companies in The World by Revenue’.