Australia’s largest telecommunications company, Telstra Corporation Ltd (ASX:TLS), has advised it is closer to selling its stake in China’s second largest real-estate website, SouFun Holdings Ltd following SouFun Holdings Ltd, filing for an initial public offering with the US Securities and Exchange Commission.
The IPO is expected to be completed by 30 September with an indicative price range of between US$40.50 and US$42.50 per American Depositary Shares.
On 13 August, the telco said it would sell its 51% stake in SouFun Holdings Ltd.Telstra purchased SouFun in 2006 for US$254 million and was anticipating receiving 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.
In fiscal 2010 Telstra recorded a $3.88 billion profit falling from the $4.07 billion profit reported for the year to 30 June 2009.