Shares in Value Logo
Product Review Img Vertical

Date : 30/06/2021

Telstra Share Price surge On Asset Sale

Why Telstra Share Price surged on the ASX today?

Telstra shares on the ASX saw a massive uptick in trading volume today as TLS stock price jumped 4.44% on a day when the ASX 200 index also bounced back from a couple of red trading sessions. Telstra shares were upbeat as the firm announced the sale of 49% of Telstra’s Tower business for $2.8 billion to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and Sunsuper.

Telstra’s Tower business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. The overall value of the business comes in at $5.9 billion, representing an FY21 pro forma EV/EBITDA multiple of 28x. Telstra expects net cash proceeds after transaction costs of $2.8 billion at completion and the Towers entity will have no debt. Completion is expected in the first quarter of FY22. Telstra intends to return approximately 50% of net proceeds to shareholders in FY22. This boost in dividends and the availability of funds has sent the Telstra share price in a frenzy as buying volumes were significantly higher than the average trading volumes for TLS shares.

The deal is a milestone in the T22 strategy that Telstra is actively working on to unlock the value of their assets. Andrew Penn, Telstra CEO said “Telstra’s objective in seeking a strategic partner has been to maximise overall value for our shareholders, maintain control of the assets and agree terms that secure Telstra’s mobile network leadership and competitive differentiation into the future. I am pleased that we have been able t o achieve that ahead of schedule through this transaction announced today.”

Telstra shares closed at $3.76 a share today, and a significant dividend boost is now expected in FY22, courtesy of the deal.

Looking for best dividend stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your ‘Top 3 Income Stocks to buy in 2021’ Report instantly for free! Click here to download now!

 

Are You Looking To Buy The Best Stocks In 2022?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2022!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2022

asx landing page
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.

Download Your Free Report

By downloading this report you agree to the TERMS AND CONDITIONS and our PRIVACY POLICY

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Please fill in your details to download the free report.