TLS telstra group limited

Where to now for long term investors of Telstra, page-11463

  1. 9,994 Posts.
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    The figures i have read ,its a $2b acquisition,govt pays $1.5b,telstra $500m ,total ebitda $200m,tls's share $50 million ebitda.
    Tls net profit lets guess $30 m.Whoohoo.
    Negatives.
    -one would have to be naive to underestimate the chinese reaction to tls taking a strategic position against the ccp in the pacific telco sector,lets not forget the crayfish left on the tarmac coal,beef,wine etc bans.Hauwei banned by australia.Australia has been made an example of many times in the past.This is a telco issue so who is the obvious target.
    -what 75% govt owned 25% tls owned what could go wrong all they need to do is estiblish a nbn style nbn agreement.? plenty can go wrong wait for the headline re headwinds.
    -lets not forget the leo constellations currently being established.Faster and more reliable than the 3g/4g networks when covering all the islands.example one small island not worth covering with a seacable and a mobile tower,leo satellites will cover it immediately connecting all global countries including capitals suva etc.
    -just another complicated decision,acquiring a 25% interest with above risks for $500m.

    imo there are much better opportunities for tls to spend $500m on,energy,health,esports arena,expand and adjust tls retail store business models etc what ever.
    As posted it is an important strategic acquisition but its a poltical acquisition not a business acquisition.imo
    To suggest we r over estimating the chinese threat imo is naive,i like the expression the 'art of war' something china is excelling in by passive major achievements compared to military conflict so far.,but with the advantage of being nearly the no1 global economy plus its 1.6b population hitler had no such advantages.
 
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