Why did Telstra (TLS) shares rally today?
TLS +4.44%: Rallied today after announcing the sale of a 49% stake in its mobile infrastructure business InfraCo Towers to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and SunSuper for $2.8 billion. The deal was done earlier than we/the market expected and at a better price. A quote from Andy Penn today a good one about the consortium understanding the value of the assets more than others, in other words, paying well over what anyone else would! ~50% of the $2.8bn will come back to shareholders however we suspect that will be in the form of a share buy-back – more detail to come at their full year results in August. All up, we think the move is another incremental positive as TLS progressively unlock value from their existing asset base.
