Telstra to Sell Chinese Website to Funds If IPO Fails
Telstra Corp., Australia's largest phone company, has decided to sell the majority of its stake in a real estate website in China to private equity funds lest a failure on its part to complete an initial public offer of the company occurs.
Besides the two shareholders of the website SouFun Holdings Ltd., the General Atlantic LLC and Apax Partners LLP will also buy the stake offer which is worth $810 million.
The Chief Executive Officer of Telstra, David Thodey wants to put the business on sale while boosting the spending on mobile services in order to bridge the loss of the domestic market share to the relatively smaller competitors.
The former CEO of Telstra Sol Trujillo had bought 51 percent of the Chinese company 4 years ago at $254 million with the target of offsetting the stalling growth in the domestic market.
The Telstra shares came down by 0.7 percent to close at Australian $2.92 in Sydney. This is the fourth successive decline and the lowest since 26th May.
The stock lost 15 percent in the current year as against the 8.4 percent drop by the S&P/ASX 200 index benchmark.
New Zealand News
- 10 pm COVID-19 curfew will negatively impact casino workers, warns BGC
- Donaco International reports H1 net loss of AU$59 million, showing significant year-on-year improvement
- Why the NZ Dollar Could Have a Very Bright Future
- Sydney’s Star Casino fined $90,000 for allowing minors to gamble in 2019
- Danville Casino Campaign being led by former Caesars CEO Tony Rodio