Telstra Corporation Limited (ASX:TLS) has announced the sale of its New Zealand subsidiary TelstraClear for $660 million.

Australia’s largest telco sold the business to Vodafone New Zealand and says it will return $380 million in cash to Australia via a pre-completion dividend.

Telstra’s CEO says the transaction is consistent with its overall strategy and capital management framework.

In the first half of its 2012 financial year Telstra reported a net profit of $1.5 billion.