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- Release Date: 12/07/12 12:32
- Summary: ASSET: TLS: Telstra announces sale of TelstraClear for NZ$840 million
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TLS
12/07/2012 10:32
ASSET
REL: 1032 HRS Telstra Corporation Limited
ASSET: TLS: Telstra announces sale of TelstraClear for NZ$840 million
Telstra announces sale of TelstraClear for NZ$840 million
(A$660 million)
12th July 2012 - Telstra will sell TelstraClear, its wholly owned New Zealand
subsidiary, to Vodafone New Zealand for NZ$840 million (A$660 million).
Telstra will also return approximately NZ$490 million (A$380 million) in cash
to Australia via a pre-completion dividend, which is already consolidated in
Telstra's Group results.
Vodafone New Zealand will acquire TelstraClear's voice and data based
services, network infrastructure and New Zealand customer-base.
Telstra's Chief Executive Officer, David Thodey, said the transaction has a
strong strategic rationale and is good for Telstra's shareholders.
"The deal is a natural one, bringing together TelstraClear's
fixedtelecommunications and data products and corporate client-base with
Vodafone New Zealand's mobile offering and retail customer-base," Mr Thodey
said.
"The transaction is consistent with Telstra's overall strategy and capital
management framework that we outlined in April," he said.
As part of the transaction, Telstra has entered into an agreement with
Vodafone New Zealand to ensure service continuity in New Zealand for its
trans-Tasman customers.
The sale is contingent on New Zealand regulatory approval, including the New
Zealand Commerce Commission, Overseas Investment Office and Ministry of
Business, Innovation and Employment, which is expected to take a number of
months.
The sale proceeds, when received, will be incremental to Telstra's previously
stated expected three-year excess free cashflow of $2-3 billion (subject to
the NBN roll out schedule and market conditions).
Subject to completion adjustments, Telstra will also record an accounting
impairment of approximately A$130 million in FY2012, and an additional
impairment of approximately A$130 million in FY2013 which is largely due to
unrealised foreign currency losses.
Note: Figures are based on an A$ NZ$ conversion of $1.28.
End CA:00224880 For:TLS Type:ASSET Time:2012-07-12 10:32:51
