Telstra has today officially announced its proposed restructure, which would see the group split into four separate entities.
The legal structure, where all four offshoots will fall under the umbrella of holding company Telstra Group, includes the following entities: InfraCo Fixed, InfraCo Towers, ServeCo.
Telstra is also splitting its international business into a new subsidiary.
The restructure of Telstra Group is contingent on shareholders approving the push to transfer investments into the new entity.
“Telstra shareholders will own shares in the new holding company on a like-for-like basis with no change to ownership levels,” the company said.
The restructure is expected to be completed by December 2021 and Telstra says the plans are part of the company’s T22 Strategy.
“It also reflects the new post-COVID world we are living in and the fact our assets are a critical part of the infrastructure that is enabling the nation’s rapidly growing digital economy,” Telstra chairman John Mullens said in a statement to the ASX.
“In addition to shareholder and court approval, there a re a number of other steps to work through including taxation, stamp duty rulings and discussions with government, regulators and other key stakeholders.”
Commenting on the news, Telstra CEO Andy Penn said the new legal structure is an important milestone in the company’s history.
“The new structure has been chosen as it delivers a modern, optimal long-term portfolio structure for the Telstra group of businesses, which will maximise flexibility and value realisation of our assets and deliver optimal outcomes for the Telstra Group as a whole,” he said.
