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Telstra stops $4.4 billion fundraising plan after state partner’s veto

Staff Writer | August 30, 2017
Telstra dropped a plan to raise as much as A$5.5 billion ($4.4 billion) through an income securitization deal after a government-backed business partner rejected the move, sending its shares tumbling.
Telstra
Communications   National Broadband Network
Telstra said two weeks ago it was considering doing a deal with investors by which it will get upfront a chunk of the A$1 billion per year that it receives from state-owned National Broadband Network (NBN), which rents ducts and other infrastructure from Telstra.

But on Wednesday Telstra said in a statement it was scrapping the plan as the government network refused consent.

“Without that, we can’t proceed,” Telstra spokesman Jon Court told Reuters, adding though, that it will continue to receive the income from the state network.


 

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