Future Fund reduces Telstra stake

21 Aug 2009

Australia’s Future Fund, which was established in 2006 to assist future Australian governments meet the cost of public sector superannuation liabilities by delivering investment returns on contributions to the fund, has sold 684.4 million shares in incumbent Telstra, Bloomberg reports. The sale has reduced the Fund’s stake in Telstra from 16.4% to 10.9%, raising approximately AUD2.37 billion (USD1.96 billion); the Australian government placed the last of its stake in Telstra in the fund on completion of the third stage of privatisation of the operator in February 2007.

According to TeleGeography’s GlobalComms database, in October 2008 it was reported that the Future Fund was preparing to gradually reduce its stake in Telstra over a three to five year period.

Australia, Telstra (incl. Belong)