Telstra shares have hit their highest level in almost nine years after selling its stake in Hong Kong mobile business CSL for around $2 billion.
The Australian telco, along with fellow owner New World Development, has agreed to sell CSL to HKT in a deal worth $US2.42 billion ($A2.74 billion).
Telstra is expected to receive around $2 billion for its 76 per cent stake, depending on currency fluctuations, giving it a profit of around $600 million.
Chief executive David Thodey said CSL had experienced considerable success in the Hong Kong market, but the sale was in the best interests of Telstra shareholders.
"There are a number of dynamics in the Hong Kong mobiles market that means this is the right opportunity for Telstra to maximise our return on this successful asset," he said.
Telstra shares gained nine cents, or 1.8 per cent, to $5.20, their highest closing price since February 2005.
Mr Thodey said the company would continue to look for opportunities in Asia.
"We want to leverage our domestic strengths to grow our global footprint," he said.
"The team is focused on refining and enhancing our strategy across Asia and identifying further opportunities to build our capability in the region."
Telstra said the proceeds of the sale will be incremental to its free cashflow guidance of $4.6 billion to 5.1 billion for the 2014 financial year.
