Credit: Telstra
Telstra is taking the next step towards finalising its legal restructure in creating its new holding company, which will be named Telstra Group.
The telco proposed its legal restructure in 2020 as a way to create ‘potential opportunities to monetise its infrastructure assets and deliver additional value to shareholders.’
Telstra Group will house four main entities – InfraCo Fixed, Amplitel (InfraCo Towers), Telstra Ltd (ServeCo) and Telstra International.
The telco will use a Scheme of Arrangement to implement key parts of the restructure in creating Telstra Group. This will involve the transfer of assets and liabilities within the entities, which will be transferred by court order, and is expected to occur in late August.
The new parent company and listed entity is anticipated to take shape by the end of October.
Once the new holding company comes into place, the telco will establish its international business under Telstra International, which will house that component of the business along with its subsea cables.
Changes to Definitive Agreements with NBN Co will also require authorisation by the Australian Competition and Consumer Commission (ACCC) to ensure those agreements are authorised for competition law purposes.
This marks the biggest restructure for the telco since 1997.
Telstra embarked on initiating a strategic review of its business in 2018, first named T22, which has since evolved to T25, to step beyond the structural separation and turn into a telco focused on customer experience and shareholder growth.
