Telstra to Consider Share Buyback after NBN Deal
Telstra has told shareholders the company will consider a share buyback after approval and implementation of the deal with NBN Co.
On Tuesday, shareholders backed Telstra’s participation in the roll out of the National Broadband Network (NBN), based on the proxy and direct voting position presented at the telco giant's annual general meeting.
Under the deal, Telstra will hand over the company's fixed-line phone network to the Australian government for $11 billion, with the financial benefits to come over a period of 30 years.
The resolution on the NBN has received the support of 99 percent of shareholders who have voted or lodged a proxy. The final results of the poll on this item will be available later today.
Telstra Chairwoman Catherine Livingstone said the company would consider returning capital to shareholders after the deal with the government's new A$38 billion ($39 billion) high-speed fibre network goes through.
She also said the company would pay dividends in the coming years.
"Nevertheless, to avoid any uncertainty in the short term, I can confirm that it is the board's intention to maintain a 28 cent fully franked dividend for fiscal 2012 and fiscal 2013," she said.
At 0325 GMT, Telstra's shares were up 1.6 per cent at A$3.16, against a 1.8 per cent fall in the benchmark S&P/ASX 200, as investors turned to stocks with solid dividends. Telstra was paying a yield of nearly 9 percent on Tuesday’s trade.