Telstra Corporation Ltd
(ASX:TLS) says it will sell it its 51% stake in China’s second largest real-estate website, SouFun Holdings Ltd at an initial public offering this year.
Australia’s largest telecommunications company purchased SouFun for US$254 million in 2006 and says it expects to receive more than 40% of the purchase price originally paid from the sale.
Based on a valuation of SouFun at US$810 million, Telstra’s stake has been valued at US$413 million.
Two private equity firms, General Atlantic and Apax Partners, and two existing shareholders of SouFun Holdings, have agreed to purchase Telstra’s remaining SouFun shares that are not sold in the initial public offering.
Yesterday Telstra posted a $3.88 billion profit for fiscal 2010, below the $4.07 billion reported for the year ending 30 June 2009.
