What is Telstra (ASX:TLS) into now?

As per some media reports, Telstra Corporation Limited (ASX:TLS) is planning to inject more into its investment strategy with a focus on cutting edge technology once it will complete its merger of venture business of $US125 million with private equity powerhouse HarbourVest Partners that will create a new fund valued at $675 million. This came after it was observed that that Telstra has started modernising its business and is exploring new sources of earnings growth. This move is slated to integrate Telstra Ventures with HarbourVest and pay around $US62.5 million ($84.4 million) for roughly a 25 per cent stake in the existing business.

Further, TLS will realise $75 million from HarbourVest which will help it to buy into the existing fund. But Telstra believes that its current Telstra Ventures fund is valued at around $US250 million. In addition to this, Telstra Ventures Fund II is expected to be valued at around $US500 million, or around $675 million. This will help Telstra to continue to leverage the benefits of its successful Telstra Ventures activation while supporting future growth with a new source of capital. HarbourVest, was found to be the best driver of the merger and provided help to scale up Telstra Ventures. The Group has already been investing in technology companies since 2011 and this transaction will add to its portfolio. It is expected that ASX:TLS will take advantage of the rollout of 5G mobile. The stock was trading at $2.635 per cent and moved up by 0.6 per cent as on 2 July 2018 (3:50 PM AEST).


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