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GTT said nearing sale of European sssets to Macquarie

GTT Communications Inc. is in advanced talks to sell European fiber assets to affiliates of Macquarie Group Ltd., 3i Group Plc and AustralianSuper, 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.

GTT acquired 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 a report last month.

Representatives for GTT, Macquarie, 3i and AustralianSuper declined to comment.

GTT rose 16% to $6.15 in New York Tuesday, giving the McLean, Virginia-based company a market value of about $362 million. The shares have fallen 46% 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 traded on Tuesday at 50 cents on the dollar, up from 36.25 cents, according to Trace bond pricing data. Finance Yahoo

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