Telstra near eight-year highs after announcement of $2b CSL selloff

Telstra near eight-year highs after announcement of $2b CSL selloff Shares of Telstra are trading at nearly eight-year high after it announced the sale of its 76.4 per stake Hong Kong mobile business CSL to Hong Kong Telecommunications for $2 billion.

Telstra shares have risen 18 per cent this year. The company's shares closed up 0.9 per cent at $5.20, just off the eight-year high reached in October this year of $5.23.

HKT will also acquire the remaining 23.6 per cent holding from New World Development, making the deal worth $2.74 billion.

From this sale Telstra is set to make a profit of $600 million. The company stands by its cash flow guidance of $4.6 billion to $5.1 billion this financial year.

Andy Penn, Telstra's chief financial officer would not comment on whether the proceeds would be used to return cash to investors or fuel further acquisitions in Asia until after the transaction was complete.

Mr Penn said, "We'd need to take into account the market dynamics, our franking situation and the various different options that are available to us, including organic investment as well as inorganic investment." But at the same time Telstra was keeping all options open, he said.