GTT Communications Inc. is in advanced talks to sell European fiber assets to affiliates ofMacquarie Group Ltd., 3i Group Plc andAustralianSuper, according to people with knowledge of the matter. GTT’s shares gained as much as 31%.
The consortium is in talks to buy the assets for more than $2 billion, said one of the people, who asked to not be identified because the matter isn’t public. As with all deals that aren’t finalized, it’s possible talks could fall through.
GTTacquired the assets as part of its 2018 acquisition of Interoute Communications Ltd.
“The asset sales are critical to optimize the company’s capital structure as the proceeds are expected to reduce debt and thus improve leverage metrics significantly,” Fitch Ratings wrote in areport last month.
Representatives for GTT, Macquarie and 3i declined to comment. Representatives for AustralianSuper didn’t immediately respond to requests for comment.
GTT rose 21% to $6.42 11:38 a.m. in New York Tuesday, giving the McLean, Virginia-based company a market value of about $378 million. The shares have fallen 45% this year, amid concerns over its $3.6 billion in debt and accounting issues that have delayed its ability to file a 10-Q.
GTT bonds maturing in 2024 last traded at 36.25 cents on the dollar, according to Trace bond pricing data.
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