SYDNEY, Dec 20 (Reuters) - Australia’s Telstra Corporation said on Friday it has signed an agreement to sell its 76.4 percent stake in Hong Kong-based mobiles business to HKT Ltd for $2 billion.
HKT Ltd will also buy the remaining 23.6 percent of the CSL business that is currently held by New World Development.
Telstra Chief Executive David Thodey said it was the right time to capitalise on the success of CSL, which has recorded compound annual revenue growth of 9.4 percent over the past three years.
“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,” Thodey said in a statement.
Thodey said Asia remained an important part of Telstra’s strategy and the company intended to be in the region in the long-term.
Telstra recently took a controlling stake in Autohome Inc , the owner of Chinese car sales websites, that listed on the New York Stock Exchange earlier this month.
The HKT deal is subject to regulatory approval in Hong Kong.