Telstra’s shares have hit an all-time low this morning of $2.82 after the company announced it will sell its 51% stake in Chinese real estate website SouFun Holdings.
The sell-off comes after a shocking day for the company yesterday, during which its shares dropped 10% following a relatively disappointing financial result. This morning, shares were down 1.9% to $2.88 at 11.20 AEST.
Private equity groups General Atlantic and Apax Partners have both agreed to underwrite a stockmarket float of SouFun, the country’s second-largest real-estate website.
Telstra confirmed the two companies, and two other owners of SouFun, have agreed to buy up a shortfall of shares in the IPO, or purchase the company’s 51% stake based on a $902 million valuation.
The telco bought its stake in SouFun in 2006 for $US254 million. At the time, former chief executive Sol Trujillo said the investment would allow the company to move into the Chinese market with advertising.
The announcement comes after Reuters reported last month SouFun was searching for a US IPO that would be worth up to $US300 million.
Meanwhile, Sigma Pharmaceuticals has released a statement in which it denies the company has received an unconditional takeover from South African group Aspen Pharmacare.
“As was previously advised, Sigma continues to consider other business and financial structures to take the Group forward, including a number of potential asset sales,” Sigma said.
The Age has reported that Aspen is looking to force a decision from Sigma by increasing its bid, in a deal that would give Aspen control of the entire company.
Shares open flat after Wall Street drops on jobless data
The Australian sharemarket has opened lower this morning, following a disappointing night on Wall Street where investors backed off due to disappointing jobless data.
The benchmark S&P/ASX200 index was up 13 points or 0.31% to 4414.5 at 12.20 AEST, while the Australian dollar managed to maintain its ground from a drop yesterday, staying at US89c.
ANZ shares lost 0.5% to $21.99, while Westpac rose 0.3% to $22.28. NAB lost 0.9% to $23.53 as Commonwealth Bank gained 0.4% to $50.91.
As reported by The Australian, private equity group TPG is now looking at a restructuring plan for power generator Alinta Energy.
The fund has joined with other lenders to look at a debt-for-equity plan to resurrect the company, with the proposal understood to be in early stages of development.
Economic jitters overseas
General Motors chief executive Ed Whitacre has resigned, in a move that has raised investors’ fears over how the company will be led as it continues paying back the US Government.
Dan Akerson will replace Whitacre in September. Whitacre was appointed by the Obama Administration as one of the directors to help oversee the Government’s $US50 billion finance spend to help put the company back on track.
“It was obvious that I was not going to be at GM for the long haul,” Whitacre said at the end of a conference call. However, the news has pushed back the company plans to file for an IPO.
The news wasn’t taken well on Wall Street, where investors were already shocked at new jobless numbers which showed claims for benefits rose by 2,000 to 484,000 in the week ending August 7 – a second consecutive increase.
“This is not a good number,” MF Global analyst John Brady told Reuters. “Claims are going the wrong way. That has the market concerned.”
The news, alongside a downgrade of wheat supply figures by the Agriculture Department, sent the Dow Jones Industrial Average down 58.88 points, or 0.57%, to 10,319.95.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
