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June 15, 2001
Donald Smith, Rogers, (907) 373-2288; donaldl@rogershsa.com
Dana Heidemann, GCI, (907) 265-5355; dheidemann@gci.com
FOR IMMEDIATE RELEASE
GCI SIGNS STOCK PURCHASE AGREEMENTWITH ROGERS CABLE INC. FOR
ALASKA CABLE TV PROPERTIES
ANCHORAGE, AK -- General Communication, Inc. (GCI)
announced today that it has signed an agreement with Rogers Cable
Inc. to acquire 100 percent of the stock of Rogers American
Cablesystems, Inc. (Rogers), a cable TV provider in Alaska. Subject
to receiving regulatory approvals, Rogers Cable Inc. will receive
$19 million in cash for the transaction.
"With this acquisition GCI will be able to provide a full suite
of competitive telecommunications services to the residents of one
of Alaska's fastest growing regions," said Ron Duncan, GCI
President. "The proximity of these communities to GCI's existing
Anchorage system will provide significant synergies and allow the
rapid deployment of new services. Many of the consumers in these
communities are already customers of GCI's long distance and
Internet services. We look forward to providing additional services
and to serving additional customers in these communities."
"Rogers Cable Inc. is pleased with the transaction", stated John
H. Tory, President of Rogers Cable, "The Alaska customers will
benefit from local ownership while Rogers will continue to focus on
serving customers in its primary markets of Ontario and Eastern
Canada."
Rogers currently has approximately 7,300 Alaskan subscribers
with more than 10,000 homes passed. Communities served include both
Palmer and Wasilla. The system offers 55 channels including premium
channels.
GCI anticipates closing the transaction in the fourth quarter of
2001. The transaction will be subject to approval from the
Regulatory Commission of Alaska and the Federal Communications
Commission.
According to Duncan, Rogers has 15 employees, which under
current plans all will be transitioned to GCI upon closing.
Once regulatory approval is received, GCI will start the work
necessary to interconnect the two cable television plants. It is
planned that GCI will invest $3 million over the next two years to
upgrade the plant and migrate technical and billing functions onto
the GCI platform.
After close of the transaction, GCI will have approximately
130,000 subscribers in Alaska and pass 85 percent of the state's
households.
Rogers Cable Inc. is a wholly owned subsidiary of Rogers
Communications Inc. (Toronto: RCI.A and RCI.B; NYSE: RG). Its
hybrid fiber-coaxial network is one of the most advanced in North
America, delivering high quality entertainment, information and
communication services to 2.3 million customers in Ontario, New
Brunswick and Newfoundland. Rogers' network is more than 84 percent
two-way ready and is ideally suited for delivering interactive
products and services that require significant bandwidth, such as
Rogers@Home, high speed Internet access via cable. As Canada's
largest cable operator, the company also owns and operates over 240
Rogers Video stores. Additional information on Rogers is available
at www.rogers.com
GCI (NASDAQ: GNCMA) is an Alaska-based integrated communications
provider that delivers voice, video and data services through its
fiber optic, satellite, hybrid fiber coaxial and metropolitan area
network facilities. More information about GCI can be found at
www.gci.com
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