Telstra shareholders score another win
Small shareholders in Telstra will benefit from the Federal Government's decision not to take part in a $1 billion share buyback. About $500 million which would have gone to the Government will now be returned to shareholders.
The Government's stake in Telstra will increase from 50.1 per cent to about 50.9 per cent which means an even more lucrative deal if it decides to sell its stake.
The Government said the buyback would be “too complicated” because the law prevents the Government's share of the telco from falling below 50.1 per cent. Telstra's buyback was announced on August 28 with between $800 million and $1 billion expected to be returned to shareholders.