Telstra CEO Andy Penn announced the capital management program on Monday without giving specific details of the nature of program but said that “creating this type of shareholder value is in accordance with our capital management framework”.
As reported by iTWire, last month Telstra announced the sale of its majority stake (47.7%) in Autohome to China insurer, Ping An at US$29 per share, or a total A$2.1 billion (US$1.6 bn). The sale leaves Telstra with a share of just 6.5% in Autohome.
Penn said Telstra is currently examining various ways to return capital to shareholders with the exact nature, amount and timing dependent upon market conditions and all necessary regulatory approvals.
“I am pleased that we are able to confirm such a significant capital management program as the result of active management of our investment portfolio. Given our recent announcement of the sale of Autohome shares, we believed it was important to provide the market with further information about how we intend to use those funds.
“Importantly, we also maintain sufficient capacity to invest in our growth plans for the future.”