CANBERA (dpa-AFX) - Telstra agreed to sell 49 per cent of its Towers business to a Commonwealth-led consortium for $2.8 billion. The consortium comprised of the Future Fund, Commonwealth Superannuation Corporation and Sunsuper.
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 fiscal year 2022.
Telstra intends to return approximately 50 per cent of net proceeds to shareholders in 2022.
Telstra has entered into a 15 year agreement with InfraCo Towers to secure ongoing access to existing and new towers.
The company will invest $75 million from the proceeds to further enhance connectivity in regional Australia.
InfraCo Towers will operate under a board, chaired by InfraCo CEO, Brendon Riley and comprising other Telstra and consortium representatives. The CEO will be Jon Lipton, currently head of the towers business within Telstra.
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