Where to now for long term investors of Telstra, page-12179

As Telstra shareholders are asked to pave the way for infrastructure assets sales, JPMorgan analysts have run the numbers on what Telstra InfraCo could be worth and what it could do with any sale proceeds.JPMorgan reckons selling a 49 per cent stake in InfraCo could reap $12 billion to $17 billion in post-tax cash proceeds for Telstra, which could be used to repay debt and for capital returns.Telstra’s InfraCo owns and operates the telco’s passive network assets including data centres, exchanges, its fibre network, physical mobile tower assets, ducts and pipes. Quentin JonesIf Telstra wanted to keep net debt in the middle of its 1.5 to 2-times EBITDA target, JPMorgan said it may need to set aside only $1.75 billion to repay debt.“Therefore, under the different valuation scenarios we estimate A$10.5-$15.5 billion could be returned to shareholders,” the analysts told clients on Tuesday morning.JPMorgan’s tipping buybacks as the most likely way to return the capital, which would increase dividends on remaining shares.