Telstra (ASX:TLS) - Outgoing CEO, Andrew Penn
Outgoing CEO, Andrew Penn
Source: Yves Herman/Reuters
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  • Telstra (TLS) maps out the remaining steps required to finalise its proposed legal restructure over this year
  • The company is using a scheme of arrangement to implement key parts of the restructure as the most efficient way to create the new Telstra Group
  • The first court hearing is expected to occur in late August, after which the scheme booklet will be made available to shareholders ahead of a vote
  • The company says the restructuring is likely to be complete by the end of October 2022
  • TLS shares are up 0.9 per cent, trading at $3.91

Telstra (TLS) has mapped out the remaining steps required to finalise its proposed legal restructure over this year.

The company is using a scheme of arrangement to implement key parts of the restructure as the most practical and efficient way to create the new Telstra Group, which will have four main entities — InfraCo Fixed, Amplitel (InfraCo Towers), Telstra Limited (ServeCo) and Telstra International.

The restructure will involve the transfer of assets and liabilities within entities of the Telstra Group, and the scheme will enable those to be transferred by order of the Federal Court of Australia.

Once the new structure is in place, Telstra will establish its international business under a separate subsidiary — Telstra International — within the Telstra Group to keep that part of the business, including subsea cables, together as one.

The first court hearing is expected to occur in late August, after which the scheme booklet will be made available to shareholders ahead of a meeting and shareholder vote, expected to occur before or at the 2022 Telstra Annual General Meeting (AGM).

Telstra estimates that the restructuring is likely to be implemented by the end of October 2022.

The final timing, however, is dependent on the date of the scheme meeting and the Australian Competition & Consumer Commission’s (ACCC) authorisation of Telstra’s definitive agreements with nbn co.

The definitive agreements have also been changed to ensure they continue to apply in the intended way once the restructure is implemented, and will require authorisation by the ACCC.

The authorisation will ensure that both Telstra and nbn co’s conduct under those changed agreements is authorised for competition law purposes.

Both parties will submit an application in the near future so the ACCC can commence its authorisation process.

So far, Telstra said it has made significant progress in achieving the objectives and implementation of its legal structure, including establishing Amplitel as a standalone business and subsequent 49 per cent sale.

Amplitel delivered net cash proceeds after transaction costs of $2.8 billion.

Steps have also been taken to establish InfraCo Fixed as a standalone business, which includes intercompany agreements developed between it and Telstra Ltd.

TLS shares were up 0.9 per cent, trading at $3.91 as of 11:52 am AEDT.

TLS by the numbers
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