Australia-based mobile device provider Telstra Corporation Ltd will sell CSL to its Hong Kong-based mobiles business to HKT Limited for $2.425 billion

By VCPOST Staff Reporter

Dec 19, 2013 08:42 PM EST

Australian leading mobile device provider Telstra Corporation Ltd will sell CSL, its mobiles business in Hong Kong. HKT Limited will buy the said business for $2.425 billion, according to Business Spectator.

According to a statement to the Australian Securities Exchange, the deal will give Telstra an earning of roughly A$2 billion. The statement said the firm will exit a 76.4% stake in CSL, the report said.

Under the terms of the transaction, HKT will acquire the remaining 23.6% stake held by New World Development in the mobiles business. The deal is subject to Hong Kong's regulatory approval, including HKT and PCCW Limited security holder approval, the report detailed.

According to Telstra chief David Thodey, the company had experienced substantial success in Hong Kong. He also said the deal was a opportunity to maximize shareholder value, Business Spectator reported.

Thodey said of the Hong Kong business: "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."

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