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