Telstra has confirmed that it will use most of the profit from the sale of a 47.5% stake in Chinese car website Autohome on a capital management program later this year.
Chinese insurance giant Ping An Insurance Group paid $US1.6 billion ($A2.1 billion) for the stake, with Telstra pocketing about $1.8 billion from the sale once adjustments including foreign exchange rates are made.
“Autohome has been an excellent investment for Telstra and we are pleased to have realised significant value for Telstra shareholders,” Telstra chief executive Andrew Penn, said in a statement.
There will be around $1.5 billion available for the capital management program which will be detailed in August when the company reveals its 2015-16 results.
Telstra will retain a 6.5% stake in the site after the sale. The deal faces “residual litigation” in the Cayman Islands, which the company is contesting, Telstra said in yesterday’s statement.
Telstra shares eased 0.7% to $5.24 yesterday.
