Telstra to make its international business a fourth subsidiary

Telstra is set to carve its international division into a fourth subsidiary, expanding a restructure it announced late last year.

The telco said in an ASX filing [pdf] that instead of splitting into three subsidiaries as it indicated it would in November last year, it will now split into four under the umbrella of a new holding company, Telstra HoldCo. 

The extra subsidiary will house Telstra’s International business, which has about 3500 staff split between 20 countries. 

Telstra said it planned to complete the restructure by the end of 2021, subject to shareholder, court, regulatory and other approvals being met.

Shareholders will receive detailed information about the proposal in “early September” before being asked to vote on it at the telco’s annual general meeting in October.

“Following the restructure, Telstra shareholders will own shares in new holding company on a like for like basis with no change to their ownership levels,” Telstra said.

The telco added that existing external debt is proposed to be held by the InfraCo Fixed subsidiary, with the holding company responsible for any refinancing, though it added this is a proposal only and “no final decisions [have been] made”.