TLS
14/03/2016 10:34
GENERAL
PRICE SENSITIVE
REL: 1034 HRS Telstra Corporation Limited
GENERAL: TLS: Negotiations ended on Philippines wireless joint venture
Negotiations ended on Philippines wireless joint venture
14 March 2016 - Telstra and San Miguel Corporation have been unable to reach
commercial arrangements on a possible equity investment in a wireless joint
venture in the Philippines and negotiations have therefore ceased.
Telstra Chief Executive Officer Andrew Penn today said the organisations had
agreed at the weekend to bring negotiations to an end.
"Despite an enormous amount of effort and goodwill on all sides, we were
simply unable to come to commercial arrangements that would have enabled us
all to proceed," Mr Penn said.
"While this opportunity is strategically attractive, and we have great
respect for San Miguel Corporation and its President Mr Ang, it was obviously
crucial that the commercial arrangements achieved the right risk-reward
balance for all involved."
Telstra has offered to continue technical network design and construction
consultancy support to San Miguel Corporation, should those services be
required.
"We continue to pursue growth opportunities in Asia consistent with our
strategy. Following our April 2015 acquisition of Pacnet, Telstra is now one
of the largest connectivity providers in Asia," Mr Penn said.
"Our investment decisions will be guided by our capital management framework.
Investments remain an
important part of our future to ensure sustainable growth in earnings and
shareholder returns over time."
Telstra last year confirmed it had been negotiating a possible joint venture
with San Miguel Corporation and
envisaged investing up to USD$1 billion should the joint venture proceed.
Media contact: Jason Laird, +61 (0) 488126823
Email: [email protected]
www.telstra.com.au/abouttelstra/media-centre/
Investor contact: Peter Kopanidis, +61 (0) 412171673
Email: [email protected]
Ref number: 035/2016
End CA:00279198 For:TLS Type:GENERAL Time:2016-03-14 10:34:39
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