Telstra sells part of it’s network
Telstra has announced that it is selling a $2.8 billion interest in it’s mobile phone network which represents 49% off the value of Telstra’s InfraCo Towers. The buyer of the towers is a consortium of the Future Fund, Sunsuper and Commonwealth Super. This purchase price values the asset as 28 times earnings before interest, tax, depreciation, amortization and leases.
The sale was significant as it appears to show the value that the infrastructure is to institutional investors as the asset is key in providing a long term income stream that is both defensive and resistant to inflation. Some key elements in the sale wasn’t a deterrent for buyers including restrictions on various usage aspects to protect Telstra’s coverage advantage.
Telstra is well on it’s way to creating a holding company which consists of unique entities created out of the original mammoth organization including InfraCo Towers, Telstra International, ServCo and InfraCo Fixed.
This restructure will allow Telstra to be flexible with any sale or restructure efforts allowing it to separate the capital assets from it’s customer facing operations. ServeCo will embody the company’s retail operations and spectrum assets and will be Telstra’s primary business moving forward.
InfraCo Fixed currently leases it’s asset including pits, ducts and copper to the NBN.
Telstra is now providing great deals on it’s mobile phone products. Use a Telstra promotion code to save on your next order.