Australian telecommunications giant Telstra announced Wednesday it had completed the sale of Hong Kong-based mobile business CSL to HKT Limited, with proceeds for its stake totalling US$1.99 billion.
Telstra revealed in December it planned to offload the operation, saying while revenue was growing strongly and market share was up, dynamics in the Hong Kong market meant it was time to sell.
The sale, which went ahead following regulatory consent from Hong Kong’s Office of the Communications Authority, equates to US$1.99 billion for Telstra’s 76.4 percent stake.
“As part of the sale HKT also acquired the remaining 23.6 percent shareholding held by New World Development,” Telstra said in a statement of the Hong Kong-listed firm.
“The transaction is expected to generate a profit on sale for Telstra of approximately Aus$561 million (US$527 million) subject to completion accounts and audit.”
In announcing the sale in December, chief executive David Thodey said Asia remained an important part of Telstra’s strategy and the company intended to remain in the region in the long-term.
“The team is focused on refining and enhancing our strategy across Asia and identifying further opportunities to build our capability in the region,” he said.