REG - Telstra Corp. Ld - Telstra - on-market share buyback of up to $1.35b

TelstraAnnouncement

12/08/2021 07:06

RNS Number : 3888I
  
Telstra Corporation Ld
  
12 August 2021
  
 





12 August 2021
 
 
 
The Manager
 
 
RNS


 
Office of the Company Secretary
 
Level 41

242 Exhibition Street

MELBOURNE VIC 3000

AUSTRALIA
 
General Enquiries  03 8647 4838
Facsimile 03 9650 0989
companysecretary@team.telstra.com
 
Investor Relations
Tel:  1800 880 679
investor.relations@team.telstra.com
 




 
ELECTRONIC LODGEMENT
 
 
Dear Sir or Madam
 
Telstra announces on-market share buy-back of up to $1.35 billion
 
In accordance with the Listing Rules, I attach a market release for release to the market.
 
 
Authorised for lodgement by:
 
 
 
 
Sue Laver
Company Secretary
 
 
 
Telstra announces on-market share buy-back of up to $1.35 billion
 
Thursday 12 August 2021 - Telstra today announced it would return approximately 50 per cent, or up to $1.35 billion, of net proceeds from its InfraCo Towers transaction to shareholders during FY22 via an on-market share buy-back. 
 
CEO Andrew Penn said the transaction reinforced the view that Telstra's infrastructure assets could deliver additional value for shareholders.  
 
"When we launched T22, we committed to establishing a standalone infrastructure business unit for three reasons: to give transparency of those assets, to bring a harder commercial edge to how we operationalise them, and to create optionality with a view to maximising shareholder value," said Mr Penn. 
 
"This share buy-back is a clear demonstration of how we are creating additional long-term value for our shareholders." 
 
In June, Telstra announced a long-term strategic partnership with a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and Sunsuper, who would acquire a 49 per cent interest in Telstra InfraCo Towers. The Towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers.
 
The transaction valued Telstra InfraCo Towers at $5.9 billion, representing an FY21 pro forma EV to EBITDA after leasing multiple of 28x. Net cash proceeds after transaction costs are expected to be $2.8 billion at completion. The transaction is on track to complete in the first quarter of FY22.  
 
To ensure Telstra can quickly and efficiently return proceeds to shareholders, an on-market buy-back is expected to commence shortly after receipt of proceeds. A purchase of shares is likely to commence after 16 September 2021. 
 
The on-market share buy-back will be conducted in the ordinary course of trading over 12 months. The exact amount and timing of the on-market buy-back will be dependent on market conditions, and Telstra may investigate other forms of return if required. The on-market buy-back will be within the '10/12' limit permitted under the Corporations Act[i].
 
The remainder of the net proceeds from the InfraCo Towers transaction will be used for debt reduction to ensure Telstra maintains balance sheet strength and flexibility. 
 
 
-ends-
 
Media contact: Steve Carey
M: +61 (0) 413 988 640
E: media@team.telstra.com
 
Investor contact: Nathan Burley
M: +61 (0) 457 529 334
E: investor.relations@team.telstra.com 
 
Reference number: 087/2021
 
 

 


[i] The '10/12' limit for a company proposing a buy-back is 10% of the smallest number, at any time during the last 12 months, of votes attaching to voting shares of the company.
 
 
 


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