Telstra | January 26, 2011 | Press Release
Telstra and PCCW today signed an agreement to restructure the assets in their 50/50 joint venture, Reach, as part of an ongoing review of the company’s Asian assets to drive shareholder value.
The restructure will result in a division of the majority of Reach’s international assets between Telstra and PCCW. Reach will continue to manage the remaining joint assets, which are predominantly located in Hong Kong.
The restructure will give Telstra International Group greater control over the platform used to deliver end-to-end services, improving the quality of service offered to enterprise and global service provider customers. The structural changes to Reach are expected to be completed during the first half of 2011 by the management of Telstra International Group, PCCW and Reach.
As a result of this restructure, Telstra anticipates recognising an accounting gain of $50m on signing and a further $80m to $100m on completion.
