Telstra has announced it will sell most of its stake in Chinese online carsales business Autohome in a deal worth $US1.6 billion ($A2.08 billion).
Telstra said on Friday evening that it will sell 47.4 per cent of the issued shares in Autohome to financial services firm Ping An Insurance Group.
Telstra will retain a 6.5 per cent stake in Autohome.
Telstra CEO Andy Penn said Autohome had grown rapidly since 2008 and it was time to realise the value of the investment for shareholders.
"Autohome has been an excellent investment for Telstra and demonstrates the opportunities that exist in the Asia-Pacific region," Mr Penn said in a statement.
Telstra expects to book about $1.8 billion from the sale - which is subject to Chinese regulatory approval - in the second half of 2015/16.
Mr Penn said Telstra would take "a balanced approach" in using the proceeds of the sale and flagged uses could include "potential capital management options.
He also said Asia remains a key element of Telstra's growth strategy.
"Autohome has played an important role in building our presence in the Chinese technology sector," he said.
"We continue to grow our enterprise services businesses in the region with strong consolidation opportunities in our Pacnet business, joint venture in Indonesia and the exploration of future growth opportunities."
Telstra bought its 55 per cent stake in Autohome in 2008.
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