Telstra is selling its stake in Hong Kong-based mobile business CSL to Hong Kong Telecommunications for US$2 billion.
While the business has enjoyed “considerable success” Telstra boss David Thodey said now was the right time to offload the company.
“there are a number of dynamics in the Hong Kong mobiles market that means this is the right opportunity for Telstra to maximise our return on this successful asset,” he said in a statement.
The sale would equate to proceeds of approximately AU $2 billion for Telstra’s 76.4 per cent interest. HKT will also acquire the remaining 23.6 per cent shareholding held by New World Development.
Telstra expects the sale to generate an AU $600 million profit. The deal is still subject to Hong Kong regulatory and shareholder approval.
Shares were up 0.68% after the announcement, in line with the market.