Telecommunications giant Telstra will set up a new holding company and split its international operations into a new subsidiary to drive the largest reorganization since privatization.
The shares of Telstra shareholders will be held under an agreement based on Voted at the company’s general meeting in October, will be transferred to the new company. As part of the restructuring, which divides the company into four business units: InfraCo Fixed (the existing Telstra Corp), InfraCo Towers, ServeCo and Telstra International, ownership will not change.
“The new structure was chosen because it provides a modern, optimal long-term portfolio structure for the Telstra group of companies. ”: Andy Penn, CEO of Telstra.Credit:Eamon Gallagher
Chairman John Mullen said the restructuring was a step towards realizing the value of the telecommunications company’s infrastructure.
“It also reflects the new post-COVID world we live in and the fact that our assets are a critical part of the infrastructure that enables the country’s rapidly growing digital economy,” said Mullen.
The changes that will take place this calendar year reflect the largest corporate change since the Regi began privatizing the company in 1997. First announced in November, they were described as an opportunity to add value to shareholders and provide optionality for telecommunications. Andy Penn, CEO of Telstra, said the telecommunications company will work to ensure that customers’ interests are met , Suppliers and debtors are taken into account in the restructuring, as he announced the sale of all or part of the InfraCo Towers by the end of the financial year 2022.
“The new structure was chosen because it represents a modern, optimal long-term portfolio structure for the Telstra group of companies that maximizes the flexibility and realizing value of our assets and delivers optimal results for the entire Telstra group. ”Mr. Penn said.
The division of InfraCo into two different businesses is expected to give the telecommunications company more options, both regarding the potential purchase of the NBN as well as in terms of selling its infrastructure assets at an attractive price.
The formation of the new holding company and the transfer of assets to ServeCo will take place under agreements on which the shareholders will vote. The planned reorganization is expected to be completed by December 2021.
A brief recap of the day in the markets, breaking business news and expert opinions delivered to your inbox every afternoon. Register here.
Zoe Samios is a media and telecommunications reporter for The Sydney Morning Herald and The Age.
Associated title :
– Divide Telstra into four parts in case of massive restructuring
– Telstra to found a new holding company, divided into four business areas
– Telstra (ASX: TLS) maps the next steps in the proposed legal restructuring
– Why the Telstra (ASX: TLS) share price is moving today
– Telstra founds new holding company, subsidiaries at for ongoing restructuring
– Telstra will be split into four units in the proposed restructuring