Telstra Sells Half Its Towers Business For $2.8B
Telstra has sold half of its mobile infrastructure business InfraCo Towers in a deal worth $2.8 billion.
News of the transaction saw Telstra shares soar 4.3 per cent to a 52-week high of $3.78.
The sales is to a consortium, including SunSuper, Future Fund, and the Commonwealth Superannuation Corporation will be completed before the end of September.
Telstra said it will return half the sale proceeds to shareholders, via a buy back scheme, within the next financial year.
“We anticipate providing further details about the manner in which we will return those proceeds, including a potential share buy-back in FY22, at our full-year results in August,” chief executive Andy Penn said.
Telstra has also entered into a 15-year agreement with InfraCo Towers to ensure its access to tower assets.
“We believe the value of the transaction; the high calibre consortium members and the terms of the agreement which protect Telstra’s network differentiation, support our decision to accelerate the process,” Penn said.
“We will apply the net proceeds consistent with our capital management framework. We will be investing $75 million from the proceeds to further enhance connectivity in regional Australia.“