Australia’s Telstra has signed an agreement to sell its Hong Kong based mobile unit CSL New World Mobility to HKT Limited, a listed arm of the PCCW media conglomerate. With the sale subject to regulatory approval in Hong Kong, as well as requiring security holder approval from both HKT and PCCW Limited, Telstra has said it would equate to proceeds of approximately AUD2 billion (USD1.86 billion), subject to impacts of foreign currency and completion adjustment, for its 76.4% stake in the cellco. Meanwhile, it was also confirmed that HKT will acquire the other 23.6% in CSL held by New World Development, bringing the total value of the deal to USD2.425 billion.
Commenting on the decision to sell, Telstra CEO David Thodey was cited as saying: ‘CSL has been a strongly performing business, the compound annual revenue growth rate was 9.4% over the last three years and we have gained market share. We are proud of CSL’s achievements. It has established itself as a premium brand and strong player in the market, last year adding 425,000 mobile customers … However, there are a number of dynamics in the Hong Kong mobiles market that means this is the right opportunity for Telstra to maximise our return on this successful asset.’