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- Release Date: 14/05/14 16:28
- Summary: ASSET: TLS: Telstra completes sale of CSL
- Price Sensitive: No
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TLS
14/05/2014 14:28
ASSET
REL: 1428 HRS Telstra Corporation Limited
ASSET: TLS: Telstra completes sale of CSL
Telstra completes sale of CSL
Wednesday 14 May 2014 - Telstra today announced it had completed the sale of
its Hong Kong based mobiles business CSL to HKT Limited.
This followed recent regulatory consent by the Office of the Communications
Authority in Hong Kong.
The sale proceeds equate to US$1.99 billion for Telstra's 76.4 per cent
interest in CSL after preliminary completion adjustments. As part of the sale
HKT also acquired the remaining 23.6 per cent shareholding held by New World
Development.
The transaction is expected to generate a profit on sale for Telstra of
approximately A$561 million subject to completion accounts and audit.
The CSL unaudited year to date operating results at the end of April include
income of A$1.05 billion and EBITDA of A$261 million. These results will be
consolidated in Telstra's FY 14 results.
The net proceeds are incremental to Telstra's free cashflow guidance of
A$4.6billion to A$5.1billion in FY14 which excludes any proceeds on the sale
of businesses.
Telstra will now consider the net proceeds from this transaction, consistent
with its capital management framework and will provide a further update to
the market when it announces its full year results in August 2014.
Read Telstra's original announcement of this deal by following the link.
ENDS
Media contact: Nicole McKechnie, +61 (0) 429 004617
Email: [email protected]
Ref number: 75/2014
End CA:00250449 For:TLS Type:ASSET Time:2014-05-14 14:28:09
