Telstra completes sale of majority stake in Sensis

Telstra today announced it had completed the sale of a 70 per cent stake in Sensis to Platinum Equity and received proceeds of A$454 million.

This followed recent confirmation by the Foreign Investment Review Board that it had no objections to the sale.

As outlined when Telstra first announced the proposed deal on 13 January 2014:

• The sale excludes the voice services business which is retained by Telstra. In addition there are economic benefits to Telstra from services it will continue to provide to Sensis.
• The sale proceeds of A$454million are incremental to Telstra’s FY14 free cashflow guidance of A$4.6billion to A$5.1billion.
• Telstra expects to book an accounting loss on Sensis of approximately A$150 million of whichA$100million was booked in the December 2013 half year results. The balance of the loss which remains subject to completion adjustments will be accounted for in the second half of FY14.

Telstra will now consider the net proceeds from this transaction, consistent with its capital management framework.

Read Telstra’s original announcement of this deal by following the link.