April 4, 2017 / 12:55 PM / 8 months ago

BRIEF-Liberty Interactive to buy General Communication for $1.2 bln

April 4 (Reuters) - General Communication Inc

* Liberty Interactive enters into agreement to acquire general communication, inc., combine with liberty ventures group and split-off combined company from liberty interactive

* General Communication Inc - shareholders of GCI will receive total consideration of $32.50 per share

* General Communication Inc - transaction represents an undiluted enterprise value for GCI of $2.68 billion and undiluted equity value of $1.12 billion

* General Communication -Liberty Interactive will effect a tax-free separation of its controlling interest in combined co, to be named GCI Liberty Inc

* General Communication Inc - GCI Liberty will remain an alaska corporation as of deal closing

* General Communication-deal value of $32.50/share comprised of $27.50/share in GCI Liberty class a common stock, $5.00 in newly issued series a preferred shares

* General Communication Inc - sees approximately $130 million annual free cash flow from tax savings related to exchangeable bonds from deal

* General Communication -prior to split-off of gci liberty, gci liberty to execute, draw down in full on $500 million margin loan against 42.7 million series c shares of liberty broadband

* General Communication Inc - split-off of liberty interactive’s interest in GCI Liberty is expected to be completed by q1 of 2018

* General Communication-upon completion of deal, former gci shareholders to own 23% of undiluted equity and 16% of undiluted voting power of GCI Liberty Source text for Eikon: Further company coverage:

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