Telstra has completed the sale of its 76.4 percent share in Hong Kong-based mobiles business CSL to HKT Limited for US$1.99 billion, following preliminary completion adjustments.
Telstra said the transaction is expected to generate a profit on sale of approximately AU$561 million, which is subject to complete accounts and audit.
This follows recent regulatory consent by the Office of the Communication Authority in Hong Kong.
As part of the sale, HKT has also acquired the remaining 23.6 percent shareholding by the New World Development of CSL.
The CSL unaudited year to date operating results at the end of April include income of AU$1.05 billion and EBDITA of AU$261 million. These results will be consolidated in Telstra's FY14 results.
Telstra initially announced its intention to sell in December last year, where Telstra CEO David Thodey said at the time that it was an opportunity to maximise shareholder value.
"CSL has been a strongly performing business, the compound annual revenue growth rate was 9.4 per cent over the last three years and we have gained market share. We are proud of CSL's achievements. It has established itself as a premium brand and strong player in the market, last year adding 425,000 mobile customers," he said.
"However, there are a number of dynamics in the Hong Kong mobiles market that means this is the right opportunity for Telstra to maximise our return on this successful asset."
Despite the sale, Thodey said Asia remained an important part of Telstra’s strategy and the company intended to be in the region for the long term.
"We want to leverage our domestic strengths to grow our global footprint. The team is focused on refining and enhancing our strategy across Asia and identifying further opportunities to build our capability in the region," he said.