Telstra to book up to A$150m by unwinding joint venture

Telstra to book up to A$150m by unwinding joint venture

Jan. 27 (BusinessDesk) – Telstra Corp., Australia’s biggest phone company, said it will substantially unwind its Reach joint-venture which will result in an accounting gain of up to A$150 million.

Most of Reach's international assets will be divided between Telstra and Hong Kong-based partner PCCW. Reach will continue to manage the remaining joint assets which are predominantly located in Hong Kong.

“The restructure will give Telstra International Group greater control over the platform used to deliver end-to-end services, improving the quality of service offered to enterprise and global service provider customers,” the phone company said in a statement.

It expects the division of assets will be completed during the first half of this year. Telstra will recognised an immediate A$50 million gain and a further A$80 million to A$100 million on completion.

Reach was one of three joint-ventures with PCCW formed in early 2001.

Telstra, which is dual-listed on the ASX and NZX, was unchanged at $3.65 on the local stock exchange and A$2.82 in Australia. The shares have traded between $3.24 and $4.40 during the last 12 months and have been on a downward trend since about mid-2008.

(BusinesDesk)

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