Telstra Completes $1.6 Billion Sale of Autohome Stake to Ping Anby
Australian telco to book accounting gain of A$1.8 billion
Telstra contesting ‘residual litigation’ in Cayman Islands
Australia’s Telstra Corp. completed the sale of a 47 percent stake in Chinese website Autohome Inc. to Ping An Insurance Group Co. for $1.6 billion, though it continues to face litigation over the deal.
The Melbourne-based phone company will book an accounting gain of A$1.8 billion ($1.4 billion) on the sale and indicated it would use most of the proceeds to return cash to shareholders, according to a statement Thursday.
Autohome’s chief executive officer had sought to scuttle the sale of Telstra’s stake to China’s second-largest insurer by leading a management buyout offer. Telstra, which bought control of the car website operator in 2008, said it is contesting “residual litigation” in the Cayman Islands relating to the deal.
Telstra retains a 6.5 percent stake in Autohome, though its number of nominee directors on the board has dropped to one from six.