Australia’s Telstra to sell 49% of mobile tower business for $2.1 bln

Australian telecom firm Telstra Corp said it will sell a 49% stake in its mobile tower business for A$2.8 billion ($2.1 billion) and return half the sale proceeds to investors, sending its shares to their highest level in over a year.

A consortium of Australia’s sovereign wealth Future Fund and pension funds Commonwealth Superannuation Corp and Sunsuper would buy the stake in InfraCo Towers, Telstra said, in a deal valuing the entire business at A$5.9 billion.

The deal would allow Telstra to focus afresh on its retail business after years of costly competition in infrastructure with its ageing poles and wires pitted against the state-owned broadband network, analysts said.