Telstra today announced a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and Sunsuper will become a strategic partner in Telstra InfraCo Towers after agreeing to acquire a 49 per cent interest.
The Towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. The transaction values Telstra InfraCo Towers at $5.9 billion, representing an FY21 pro forma EV/EBITDAaL1 multiple of 28x. Telstra expects net cash proceeds after transaction costs of $2.8 billion at completion and the Towers entity will have no debt. Completion is expected in the first quarter of FY22.
Telstra intends to return approximately 50 per cent of net proceeds to shareholders in FY22. Telstra has entered into a 15 year agreement (with the option to extend) with InfraCo Towers to secure ongoing access to existing and new towers.
Shares in Telstra (ASX:TLS)
are trading 4.2 per cent higher at $3.75.