NEW YORK (TheStreet) -- Shares of Alaska Communications Systems (ALSK) were gaining 45.2% to $1.80 Friday after the company announced it will sell its remaining wireless assets to General Communication, Inc. (GNCMA) .
GCI will pay $300 million to acquire about 109,000 wireless subscribers and a 33% interest in Alaska Wireless Network when the deal closes. GCI will own 100% of Alaska Wireless Network after the deal closes.
The deal is expected to close in the first quarter of 2015.
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"We are pleased to reach these agreements that allow each company to pursue its own strategy," Alaska Communications president and CEO Anand Vadapalli and GCI president and CEO Ron Duncan said in a joint statement. "We are committed to a seamless service transition for wireless customers. Alaskans will continue to benefit from a vibrant competitive market for wireless services."
TheStreet Ratings team rates ALASKA COMMUNICATIONS SYS GP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALASKA COMMUNICATIONS SYS GP (ALSK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."