Telstra (ASX:TLS) plans biggest restructuring since 1997

Company News

by Michael Luu

Telco giant Telstra (ASX:TLS) is planning the most comprehensive restructuring program since the company’s privatisation in 1997.

Should the proposal receive the go-ahead from shareholders, Telstra (ASX:TLS) will be divided into InfraCo Fixed, InfraCo Towers, ServeCo and Telstra International — separate entities under the umbrella of a new holding firm. The process will be carried out by way of schemes of arrangement. Telstra Chief Executive Andy Penn has identified the move as a means to “maximise flexibility and value realisation of assets”. With two separate InfraCo entities, Telstra (ASX:TLS) will attain a flexible position to purchase the NBN and receive lucrative offers for its infrastructure assets. The matter will be voted on by shareholders in October.

Shares in Telstra (ASX:TLS) are trading 0.78 per cent higher at $3.23

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.