Liberty Interactive to buy Alaska-based telecom for $1.12bn
Liberty Interactive is currently structured into two tracking stocks - QVC Group, its home-shopping business, and Liberty Ventures Group, which holds equity interests in Liberty Broadband Corp, Charter Communications Inc, LendingTree Inc 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. GCI Liberty is expected to trade on the Nasdaq. ■