REG - Telstra Corp. Ld - Negotiations ended on Philippines jv <Origin Href="QuoteRef">TLS.AX</Origin>

TelstraAnnouncement

14/03/2016 07:00

RNS Number : 9214R
Telstra Corporation Ld
13 March 2016
14 March 2016
The Manager
RNS
Telstra Corporation Limited
Office of the Company Secretary
Level 41
242 Exhibition Street
MELBOURNE VIC 3000
AUSTRALIA
General Enquiries 61 8 8308 1721
Facsimile 61 3 9632 3215
Email:
companysecretary@team.telstra.com
ELECTRONIC LODGEMENT
Dear Sir or Madam
Negotiations ended on Philippines wireless joint venture
In accordance with the Listing Rules, I attach a copy of an announcement for release to the market.
Yours faithfully
Damien Coleman
Company Secretary


MARKET RELEASE
Negotiations ended on Philippines wireless joint venture
14 March 2016 - Telstra and San Miguel Corporation have been unable to reach commercial arrangements on a possible equity investment in a wireless joint venture in the Philippines and negotiations have therefore ceased.
Telstra Chief Executive Officer Andrew Penn today said the organisations had agreed at the weekend to bring negotiations to an end. 
"Despite an enormous amount of effort and goodwill on all sides, we were simply unable to come to commercial arrangements that would have enabled us all to proceed," Mr Penn said.
"While this opportunity is strategically attractive, and we have great respect for San Miguel Corporation and its President Mr Ang, it was obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved."
Telstra has offered to continue technical network design and construction consultancy support to San Miguel Corporation, should those services be required. 
"We continue to pursue growth opportunities in Asia consistent with our strategy. Following our April 2015 acquisition of Pacnet, Telstra is now one of the largest connectivity providers in Asia," Mr Penn said.
"Our investment decisions will be guided by our capital management framework. Investments remain an important part of our future to ensure sustainable growth in earnings and shareholder returns over time."
Telstra last year confirmed it had been negotiating a possible joint venture with San Miguel Corporation and envisaged investing up to USD$1 billion should the joint venture proceed. 
Media contact: Jason Laird, +61 (0) 488126823
Email: media@team.telstra.com
www.telstra.com.au/abouttelstra/media-centre/
Investor contact: Peter Kopanidis, +61 (0) 412171673
Email:investor.relations@team.telstra.com
Ref number: 035/2016

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