Info Image

Telstra Sells its InfraCo Towers for $2.8 billion

Telstra Sells its InfraCo Towers for $2.8 billion Image Credit: italianestro/Bigstockphoto.com

Telstra this week announced a new consortium led by Australia’s Future Fund will become a strategic partner in Telstra InfraCo Towers after agreeing to acquire a 49 per cent interest.

The Towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. The transaction values Telstra InfraCo Towers at $5.9 billion.

 

Telstra expects net cash proceeds after transaction costs of $2.8 billion at completion and the Towers entity will have no debt. Completion is expected in the first quarter of FY22. Telstra intends to return approximately 50 per cent of net proceeds to shareholders in FY22. 

As part of the transaction, Telstra would retain majority ownership of InfraCo Towers and continue to own the active parts of its network, including the radio access equipment and spectrum assets, to ensure it continued to maintain its industry leading mobile coverage and network superiority. Telstra has entered into a 15 year agreement (with the option to extend) with InfraCo Towers to secure ongoing access to existing and new towers.

Telstra CEO, Andrew Penn
Today’s announcement is a further endorsement of the strategy, as the establishment of our infrastructure assets as a separate business was designed to enable us to better realise the value of these assets, take advantage of potential monetisation opportunities and create additional value for shareholders and that is exactly what today’s announcement achieves.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

PREVIOUS POST

Kaltura Goes Public on Nasdaq with Plans to Raise $150M

NEXT POST

Graph Database Startup Neo4j Secures $325M Investment