Telstra CEO Andy Penn at their HQ in Melbourne. Aaron Francis/The Australian
Telstra CEO Andy Penn at their HQ in Melbourne. Aaron Francis/The Australian

Telstra to split into four

Telstra will split into four divisions and form a new holding company, Telstra Group, that the telco says will allow it to better monetise its infrastructure assets as it pushes ahead with a major restructure program.

Telstra said the proposed structure, to be completed by the end of December, would include InfraCo Fixed,- which would own and operate Telstra's physical infrastructure assets; InfraCo Towers; ServeCo; and a separate subsidiary for its international business.

Shareholders will have their holdings transferred to Telstra Group under a scheme of arrangement to be voted on at the company's Annual General Meeting in October.

Telstra chair John Mullen said that the restructure would help shareholders better realise value from the telco's significant infrastructure assets.

"It also reflects the new post-COVID world we are living in and the fact our assets are a critical part of the infrastructure that is enabling the nation's rapidly growing digital economy," Mr Mullens said.

"In addition to shareholder and court approval, there a re a number of other steps to work through including taxation, stamp duty rulings and discussions with government, regulators and other key stakeholders."

Mr Penn will detail the plan at a press conference Monday morning and said in a statement the move was part of Telstra's plans to sell all or part of the InfraCo Towers business by the end of financial year 2022, with binding offers to be submitted in the second quarter of that financial year.

He said Telstra was in discussions with the government and regulators, as well as NBN Co, about its restructure.

"We started setting up InfraCo almost three years ago and what has happened since has only reinforced the importance of the strategic decisions we made at the time," Mr Penn said.

"The end of the impact of the NBN rollout on our financials is within sight, and the COVID-19 pandemic has demonstrated the critical importance and value of telecommunications infrastructure to the world.

"The new structure has been chosen as it delivers a modern, optimal long-term portfolio structure for the Telstra group of businesses, which will maximise flexibility and value realisation of our assets, and deliver optimal outcomes for the Telstra Group as a whole," Mr Penn said.

Telstra shares closed at $3.21 on Friday.

Originally published as Telstra to split into four


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