Tuesday, December 24, 2013

Telstra Exits Hong Kong Mobile Market with Sale of CSL

Telstra is selling its Hong Kong based mobiles business CSL to HKT Limited for US$2.425 billion.

The sale, which is subject to regulatory approval in Hong Kong and HKT and PCCW Limited security holder approval, would equate to proceeds of approximately A$2 billion* for Telstra’s 76.4 per cent interest. HKT will also acquire the remaining 23.6 per cent shareholding held by New World Development.

Telstra CEO said market dynamics that make this the right time to sell CSL.

“CSL has been a strongly performing business, the compound annual revenue growth rate was 9.4 per cent 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,” said Mr Thodey. “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.”

http://www.telstra.com

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