Telstra Sale

Chronologies ONline

Economics, Commerce and Industrial Relations

Telstra Sale

Grahame O'Leary—Economics, Commerce and Industrial Relations Group

Last updated 15 September 2003

This Chronology is issued electronically. It will be kept up-to-date online. The date of the latest update is noted clearly above.


Milestones

Details

Source Documents

12 June 1975
Australian Telecommunications Commission (Telecom Australia) established

Telecommunications Act 1975 receives royal assent. Telecommunications was separated from postal functions in 1975 through the establishment of two separate statutory authorities under this Actthe Australian Postal Commission and the Australian Telecommunications Commission (Telecom Australia).

Senate Journal, 12 June 1975.

1 July 1989
Creation of independent regulator AUSTEL

Creation of an independent regulator AUSTEL. Telecom Australia's position as a monopoly supplier was maintained in the short term. AUSSAT and Overseas Telecommunications Corporation (OTC) remained intact but would be subject to review in 1990.

'Liberalisation of the telecommunications sector - Australia's experience', Department of Communications, Information Technology and the Arts.

6 November 1991
Telecom incorporated

Telecom is incorporated and begins trading under the requirements of corporation law as Australian Telecommunications Corporation although its trading name remains Telecom.

'Telstra shareholder History', Department of Communications, Information Technology and the Arts.

1 February 1992
Telecom and OTC merged

Telecom and OTC merge to form the Australian and Overseas Telecommunications Corporation (still trading as Telecom). AUSSAT satellite communication network sold to a new market entrant Optus Communication who would provide competition to Telecom in local network infrastructure provision.

'Telstra shareholder History', Department of Communications, Information Technology and the Arts.

April 1993
Telecom name changed to Telstra for overseas trading

Telecom changes name to Telstra Corporation Limited. Trades under Telstra for international business but to retain Telecom for domestic trading.

Telstra'History and development of the Company', Telstra Investor Relations.

1 July 1995
Telecom name changed to Telstra for domestic trading

Trading name changed from Telecom to Telstra for domestic business.

Telstra'History and development of the Company', Telstra Investor Relations.

23 January 1996
Opposition leader John Howard announces Coalition policy to sell one third of Telstra

The Coalition announces its 'communications policy' in the lead up to 1996 election, including that in its first term it would sell no more than a third of Telstra (of which no more than 35 per cent can be owned by foreigners). The remaining two-thirds of Telstra to remain in public ownership. Any further sell down would be considered towards the end of a Howard Government first term when it would formulate a proposal and seek a specific mandate on that proposal at the then forthcoming election.

John Howard, Press conference, Sydney, 23 January 1996.

2 March 1996
Howard wins Federal election

The Coalition wins Federal electionkey element of its telecommunications policy includes the partial privatisation of national telecommunications carrier Telstra.

 

 

11 April 1996
Government announces scoping study into sale of one third of Telstra

The Government announces a scoping study into the proposed sale of one-third of Telstra. The scoping study is to advise on the legal, technical, commercial, policy, public communications and management advice needed to promptly proceed with the sale.

Australian National Audit Office, Sale of One-third of Telstra. ANAO, Canberra, 1998, p. 27.

2 May 1996
Government introduces first Telstra sale legislation

Government introduces the Telstra (Dilution of Public Ownership) Bill 1996. For a background to the bill see Bills Digest No. 72, 199596, Telstra (Dilution of Public Ownership) Bill 1996 by Dr Kim Jackson, Brendan Bailey and Elizabeth Williams, Department of the Parliamentary Library.

House of Representatives, Debates, 2 May 1996Telstra (Dilution of Public Ownership) Bill 1996: First and Second Reading, pp. 294302.

9 September 1996
Senate committee report into Telstra sale tabled

Report from the Senate Environment, Recreation, Communications and the Arts References Committee, Telstra: To Sell or not to Sell? tabled in Parliament. The report recommends that Telstra remain in full public ownership.

Senate, Debastes,
9 September 1996,
pp. 30703078.

13 September 1996
Telstra annual report for year ending 30 June 1996 released

  • Revenue$15 238 million

  • Profit (after tax, abnormals and minorities) $2304.7m

Total dividend to the Commonwealth $1368m

TelstraAnnual Report 1996.

11 December 1996
Bill for sale of T1 passes the Senate

Bill for the sale of T1 passes the Senate with support of independents Mal Colston and Brian Harradine.

Senate, Debates,
11 December 1996
Telstra (Dilution of Public Ownership) Bill 1996: Third Reading, p. 7245.

19 December 1996
The Telstra (Dilution of Public Ownership) Act 1996 receives Royal Assent

The Telstra (Dilution of Public Ownership) Act 1996 receives Royal Assent on 19 December 1996.

 

 

20 December 1996
OASITO invites proposals for the role of global coordinators and/or lead managers

The request for proposals states that the global coordinator (or coordinators) would be contracted to undertake a broader management role than in previous Commonwealth public share offers and outlined the selection criteria. This role is to include: project management of the offer; management of the selling syndicate including preparation and presentation of advice to Office of Asset Sales and IT Outsourcing (OASITO) and the Government; coordination of other advisers including legal advisers and accountants; manage, arrange and participate in all aspects of sale preparation; manage and arrange a domestic marketing campaign and offer logistics; and monitor and participate in aftermarket activity.

Australian National Audit Office, Sale of One-third of Telstra. ANAO, Canberra, 1998, p. 33.

13 March 1997
Joint Global Coordinators appointed

At the conclusion of the selection process, ABN AMRO Rothschild, Credit Suisse First Boston and JB Were & Son are invited to act as Global Coordinators and as Lead Managers in Europe, the Americas and Australia respectively.

Australian National Audit Office, Sale of One-third of Telstra. ANAO, Canberra, 1998, p. 34.

18 April 1997
Telstra recapitalisation announced

The Government announces thatafter consultation with the Board of Telstra and following the advice of the Government's sale advisersit has been agreed that Telstra will make a payment from retained earnings (effectively a special dividend) to the Commonwealth of $3 billion by the end of this financial year. Telstra will raise new debt in association with this initiative to bring its capital structure more in line with other telecommunications companies.

'Telstra Recapitalisation', Joint press release, Minister for Finance, the Hon. John Fahey MP and Senator the Hon .Richard Alston, Minister for Communications and the Arts, 18 April 1997.

21 May 1997
Government appoints accountants for Telstra sale

The Government appoints two accounting firms for the partial sale of Telstra:

  • Coopers and Lybrand to act as the Government's accounting adviser; and

  • Price Waterhouse appointed as investigating accountant.

'Appointment of accountants for the partial sale of Telstra', Press release, Minister for Finance, the Hon. John Fahey MP, 21 May 1997.

12 September 1997
T1 prospectus reservations close

Reservations for a prospectus for the forthcoming Telstra float close. About 2.25 million people have reserved a prospectus which will enable them to receive 50 per cent more shares than the minimum allocation to be set by the Government.

'Late rush as Telstra offer shuts to public', Sydney Morning Herald, 13 September 1997, p. 7.

19 September 1997
Daiwa suspended from its role in the Telstra selling syndicate

Daiwa is suspended from its role in the Telstra selling syndicate for the 'Rest of the World' region in the light of investigations of Daiwa by regulatory authorities in Japan. The suspension is invoked under the terms of Daiwa's agreement with the Commonwealth.

Daiwa Securities and the Telstra public share offer, press release, Minister for Finance, the Hon. John Fahey MP, 18 September 1997.

29 September 1997
Telstra annual report for year ending 30 June 1997 released

  • Revenue - $15 983 million

  • Profit (after tax, abnormals and minorities) $1617m

Total dividend to the Commonwealth$4146m ($0.322 per shareincludes $3000m special dividend). Shares purchased in T1 float not eligible for this dividend.

TelstraAnnual Report 1997.

29 September 1997
Telstra public share offer launched

The Telstra public share offer (T1) launched with total sale proceeds expected to amount to more than $14 billion. Minimum allocation set at 400. Over 2.3 million investors reserved the offer document.

Launch of Australian public Offer Document, Joint press conference, Minister for Finance, the Hon. John Fahey MP and Telstra CEO Frank Blount, 29 September 1997.

7 October 1997
Stockbroking firms limited to 8,000 shares for private clients

The Federal Government imposes a limit of 8000 on the number of Telstra shares available to stockbroking firms for private clients. Stockbrokers and financial planners applied for 5.3 billion shares (or 25 per cent more than the total number of shares to be sold) but will be restricted to a total of only 650 million shares for private clients.

Matthew Kidman and Anthony Hughes, 'Telstra limit set at 8,000', Sydney Morning Herald, 7 October 1997, p. 25.

15 October 1997
Australian public share offer opens

The Australian public, broker firm and employee share offer opens on 15 October 1997. Over 2 million offer documents have been sent out to date with another 300 000 to arrive this week.

'Telstra offer opens', The Canberra Times, 15 October 1997, p. 29.

27 October 1997
Global institutional book build opens

The global institutional book build opens on 27 October 1997. Initial volume bids by institutions from Australia and overseas have been strong. Institutions will be submitting price bids during the week beginning 10 November 1997.

1.8 million apply for Telstra Shares, Press release, Minister for Finance and Administration, the Hon. John Fahey MP, 5 November, 1997.

31 October 1997
Broker firm and employee share offers closed

The broker firm and employee offers close. More than 56,000 eligible employeesapproximately 90 per cent of those staff eligiblechoose to apply for shares.

1.8 million apply for Telstra Shares, Press release, Minister for Finance and Administration, the Hon. John Fahey MP, 5 November, 1997.

3 November 1997
Public share offer closes

The Australian public share offer closes on 3 November 1997. The Government received 1 886 000 share applications. First instalment price set at $1.95 per share. The price of the second instalment for public applicants, due for payment on 17 November 1998, will be no more than $1.35, representing a total maximum price of $3.30 a sharePublic applicants who purchase instalment receipts under the Public Offer and hold them until the final instalment is due will be entitled to a loyalty discount on the final instalment of at least 5 cents below the final instalment payable by institutional applicants.

1.8 million apply for Telstra Shares, Press release, Minister for Finance and Administration, the Hon. John Fahey MP, 5 November, 1997.

11 November 1997
Telstra share offer supplementary notice issued

Minister for Finance and Administration, the Hon. John Fahey MP and Telstra Chairman, David Hoare issue a supplementary notice regarding the status of the pay TV industry noting that the ACCC has commenced proceedings to restrain the completion of a merger between Foxtel (50 per cent owned by Telstra) and Australia Media. Australia has also threatened to commence legal action against the Foxtel partners.

Telstra Share Offer Supplementary Notice, The Australian Financial Review, 11 November 1997.

14 November 1997
The global institutional book build closes

The global institutional book build closes on 14 November 1997. Australian institutions are reported to have bid between $3.30 and $3.40 a share after the Government increased the indicative range to $3.40.

Matthew Kidman, 'Telstra bids in:$3.40 is the tip', The Age, 14 November 1997.

15 November 1997
Final pricing completed

  • Final pricing for T1 share completed - $3.40 for institutional investors discounted to $3.30 for Australian retail investors.

  • First instalment of $2.00 per share for institutional investors discounted to $1.95 for Australian retail investors.

  • Second instalment of $1.40 per share for institutional investors discounted to $1.35 per share for Australian retail investors.

At the issue price of $3.40 per share the offer of one-third of Telstra's shares is more than four times subscribed. The Australian retail offer, which closed on 3 November 1997, provided sufficient demand to sell all 4.29 billion shares on offer while the institutional offer is 6.2 times subscribed.

  • retail investors receive 40.7 per cent of shares;
  • institutions receive 40 per cent of shares;
  • brokers receive 15.1 per cent of share allocation for clients; and
  • Telstra employees receive 4.2 per cent of shares.

Australian National Audit Office, Sale of One-third of Telstra. ANAO, Canberra, 1998,
p. 14.

Peter Rees, 'Telstra buyers instant profit', Sunday Telegraph, 16 November, 1997.

17 November 1997
Telstra debuts on stock exchange

Telstra instalment receipts debut on the Australian Stock Exchange (ASX) at 12.30pm. Over 294 million receipts are traded on first day as 1.8 million investors make an immediate profit with the first instalment receipts ($1.95) trading at $2.60. High of $2.75. Closes at $2.67. Concurrent listings also offered on the New York and New Zealand stock exchanges.

Geoff Elliot, 'Instant profits from Telstra', The Canberra Times, 18 November 1997.

19 November 1997
PM and Treasurer hint at further Telstra sell-off

The Prime Minister, John Howard and Treasurer, Peter Costello hint that they would look at a further float of Telstra after the next election. The Treasurer confirms at a National Farmers' Federation conference that net proceeds of the sale would be used to reduce public debt and not be used for tax cuts.

David McKenzie and Deborah Brewster, 'Second Telstra sell-off on cards', The Australian, 19 November 1997,
pp. 12.

15 March 1998
Howard announces further sale of Telstra

John Howard announces in closing address to the Liberal Party's national convention that the Government will introduce enabling legislation to sell the Commonwealth's remaining shareholding in Telstra.

Michael Millet, 'Howard's $45 bn war chest', The Sydney Morning Herald, 16 March 1998.

30 March 1998
Government introduces legislation to sell remaining shareholding in Telstra

Government introduces the Telstra (Transition to Full Private Ownership) Bill 1998. For background information to the Bill see Bills Digest No. 176, 199798, Telstra (Transition to Full Private Ownership) Bill 1998 by Lee Jones, Department of the Parliamentary Library, Canberra.

House of Representatives, Debates, 30 March 1998Telstra (Transition to Full Private Ownership) Bill 1998: First and Second Reading, pp. 18911897.

31 March 1998
Interim dividend paid

Interim dividend paid $0.07 (ex-dividend date 26 February 1998)franking 100 per cent.

Telstra Investor RelationsDividend History.

1 April 1998
Senate refers the Telstra sale Bill to Senate Committee

Senate refers the Telstra (Transition to Full Private Ownership) Bill 1998 to the Environment, Recreation, Communications and the Arts Legislation Committee for inquiry and report.

Senate, Debates, 1 April 1998, p. 1776.

26 May 1998
Senate committee recommends sale Bill proceed

Environment, Recreation, Communications and the Arts Legislation Committee report into Telstra (Transition to Full Private Ownership) Bill 1998 is presented to Senate. The report recommends the Bill proceed subject to a number of recommendations including that that a portion of the proceeds from the sale of the remaining two-thirds of the Telstra Corporation Ltd be used to upgrade the existing infrastructure available for telecommunications services in rural areas.

Environment, Recreation, Communications and the Arts Legislation Committee report into Telstra (Transition to Full Private Ownership) Bill 1998.

9 July 1998
Nationals win improvements for rural telecommunications

It is reported that the Government had done a deal with the National Party to ensure the Telstra (Transition to Full Private Ownership) Bill 1998 passes through the Senate (the Prime Minister is reported to have offered a communications package worth $400 million for rural areas).

Anne Davies, 'PM s $400m Telstra deal woos Nats', The Sydney Morning Herald, 9 July 1998, p. 1.

11 July 1998
Telstra sale legislation defeated in Senate by Colstan vote

The Telstra (Transition to Full Private Ownership) Bill 1998 is defeated in the Senate on the vote of Mal Colston.

Senate, Debates, 11 July 1998, pp.  56755677.

22 July 1998
Government announces staged approach for further sale of Telstra.

The Government announces a staged approach to the full privatisation of Telstra. The major points of the new policy included:

  • introduction to Parliament of a new Telecommunications Bill bringing together customer service safeguards which are to apply irrespective of any further changes in Telstra's ownership;
  • the Government to sell the remainder of Telstra in stages. The first sale will be of 16 per cent, which will leave 51 per cent, and majority control, in Government hands; and
  • no further sale, beyond 49 per cent, until the Government has established an independent inquiry which will assess Telstra's service levels to customers in each of metropolitan, rural and remote areas against prescribed standards.

'The Sale of Telstra', Joint press release, Minister for Finance and Administration, the Hon. John Fahey MP and Senator the Hon. Richard Alston, Minister for Communications, the Information Economy and the Arts, 22 July 1998.

26 August 1998
Telstra annual report for year ending 30 June 1998 released

  • Revenue$17 302 million
  • Profit (after tax, abnormals and minorities)$3004m

Total dividends provided for/or paid $1802m ($0.14 per share)

TelstraAnnual Report 1998.

3 October 1998
Howard Government returned in federal election

Coalition wins 1998 federal election. Key Coalition communications policy platform included the further sale of Telstra shares (up to 49.9 per cent) and retention of full majority public ownership until independent inquiry certifies the adequacy of rural and regional telecommunications services.

 

 

19 October 1998
ANAO completes performance audit report on T1 sale

The ANAO estimates gross proceeds from the first tranche sale of Telstra shares to be $14.24 billion. ANAO estimates the Commonwealth's direct costs to be $260 million. Direct sale costs represent 1.8 per cent of gross proceeds compared to 1.5 per cent for the 1996 third tranche sale of the Commonwealth Bank (an offering of shares in a previously listed company with proceeds of $5.15 billion) and 2.8 per cent for the Qantas initial public offering (proceeds of $1.45 billion). Selling commissions totalling $124.1 million and a $35.6 million project management fee paid to the Global Coordinators comprised the majority of sale costs.

Australian National Audit Office, Sale of One-third of Telstra. ANAO, Canberra, 1998, p. 13.

30 October 1998
Final dividend paid

Final dividend paid $0.07 (ex-dividend date 22 September 1998)ranking 100 per cent.

Telstra Investor RelationsDividend History.

12 November 1998
Government re-introduces legislation to sell remaining shareholding in Telstra

The Government re-introduces the Telstra (Transition to Full Private Ownership) Bill 1998. The Bill contains most of the provisions of the previous Bill (introduced in March 1998 but rejected in the Senate in July 1998) but also provides that an independent inquiry certify that Telstra has met prescribed service standards before the Commonwealth can relinquish majority ownership. The Bill also sets out the Social Bonus initiatives.

House of Representatives, Debates, 12 November 1998Telstra (Transition to Full Private Ownership) Bill 1998: Second Reading,
pp. 246248.

17 November 1998
Payment of second instalment receipt on T1 shares due

The second instalment receipt payment ($1.40 or $1.35 for Australian investors) for T1 shares due today.

 

 

2 December 1998
Senate refers the Telstra sale Bill to Senate Committee

Senate refers the Telstra (Transition to Full Private Ownership) Bill 1998 to the Environment, Communications, Information Technology and the Arts Legislation Committee for inquiry and report by 15 February 1999 (subsequently extended to 8 March 1999).

Senate, Debates,
2 December 1998
, p. 1101.

22 December 1998

Government announces Joint Global Co-ordinators and Business Adviser for the sale of further Commonwealth equity in Telstra (T2). The firms selected for the role of Joint Global Co-ordinators include:

  • ABN AMRO Rothschild;
  • Credit Suisse First Boston; and
  • JB Were.

The Government's Business Adviser is to be Goldman Sachs.

'Announcement of Joint Global
Co-Coordinators and Business Adviser for the
Further Sale of Telstra'
, Press release, Minister for Finance and Administration, the Hon. John Fahey MP, 22 December 1998.

16 February 1999
New Telstra CEO appointed

Dr Ziggy Switkowski appointed as the new Chief Executive Officer of Telstra. He replaces outgoing CEO Frank Blount.

'Government welcomes appointment of new Telstra CEO', Joint press release, Minister for Finance and Administration, the Hon. John Fahey MP and Senator the Hon. Richard Alston, Minister for Communications, Information Technology and the Arts, 16 February 1999.

8 March 1999
Senate committee recommends sale Bill proceed

Senate Environment, Communications, Information Technology and the Arts Legislation Committee reports to Senate supporting the full privatisation of Telstra, noting that there is no substantial opposition in submissions to further privatisation of Telstra. Labor and the Democrats submit dissenting reports.

Report by the Senate Environment, Communications, Information Technology and the Arts Legislation Committee into Telstra (Transition to Full Private Ownership) Bill 1998 and associated Bills.

30 April 1999
Interim dividend paid

Interim dividend paid $0.07 (ex-dividend date 22 March 1999)franking 100 per cent.

Telstra Investor RelationsDividend History

20 June 1999
Senator Alston announces $314m in telecommunications initiatives

The Government announces an additional allocation of $314 million (the social bonus initiatives) from the next Telstra sale to expand access in regional, rural and remote Australia to the improved telecommunications infrastructure. The initiative brings the total social bonus from the sale of the next tranche of Telstra to $1 billion.

'Assessing the futurethe Telstra social bonus', Press release, Senator the Hon Richard Alston, Minister for Communications, Information Technology and the Arts, 20 June 1999.

21 June 1999
The Telstra (Transition to Full Private Ownership) Bill 1998 passes senate allowing T2 sale to proceed

The Telstra (Transition to Full Private Ownership) Bill 1998 passes the Senate with the support of independent Senators, Mal Colston and Brian Harradine.

Senate, Debates,
21 June 1999
, Telstra (Transition to Full Private Ownership) Bill 1998: Third Reading, pp. 58265827.

5 July 1999
The Telstra (Further Dilution of Public Ownership) Act 1999 receives royal assent

Telstra (Further Dilution of Public Ownership) Act 1999 receives royal assent.

 

 

25 July 1999
T2 share offer launched

The Government launches the T2 public share offer with a minimum share guarantee of 400 shares. The Government will sell 2.132 billion shares or 16.6 per cent of Telstra. Existing shareholders with more than 2000 shares entitled to buy a minimum of one share for every five they own (up to a maximum of 10 000).

Shaun Anthony, 'Telstra opens $18b sale', The West Australian, 26 July 1999.

16 August 1999
Public offer document reservations close

Public offer document reservations for those who do not own Telstra shares close. By pre-registering for a public offer document, investors are guaranteed an allocation of 400 shares.

Telstra 2 Share Offer, public advertisement, Weekend Australian Financial Review, 31 July1 August 1999, p. 16.

23 August 1999
Joint Lead Managers appointed to T2 sale

JB Were and Ord Minnett appointed as joint lead managers in Australia. ABN-AMRO Rothschild and Warburg Dillon Read appointed joint lead managers in Europe. JB Were and ABN-AMRO Rothschild to head Asian sales. CS First Boston and Salomon Smith Barney will lead North American sales.

Geoff Elliot, 'Telstra broking line-up settled', The Australian,
24 August 1999, p. 21.

26 August 1999
Telstra annual report for year ending 30 June 1999 released

  • Revenue$18 218 million
  • Profit (after tax, abnormals and minorities)$3486m

Total dividends provided for/or paid $4247m ($0.33 per shareincludes special dividend of $0.16 per share)

TelstraAnnual Report 1999.

6 September 1999
Telstra (T2) public share offer launched

The Telstra public share offer (T2) launched with total sale proceeds expected to amount to more than $17 billion. Retail investors to get $0.40 discount. Telstra shares will be payable in two instalmentsthe first of $4.50 (due 7 October 199) with the amount of the second to be determined mid-October.

Janelle Carrigan,'Now a share for everyone', The Age,
7 September 1999.

17 September 1999
Government announces broker firm allocation

The Government announces that, following requests from broker firms for 102 per cent of the 2.133 shares on offer in the T2 sale, it will have to scale back the allocation to brokers to 20.5 per cent or 437 million shares (in T2 the Government allocated just 15 per cent of shares to brokers' clients).

Geoff Elliott, 'Buyers rush Telstra too', The Australian, 18 September 1999, p. 33.

20 September 1999
Australian public share offer opens for T2

The Australian T2 share offer opens. A total of 2.133 billion shares on offerminimum 150 shares to new applicants, 400 shares to existing Telstra share holders.

 

 

5 October 1999
Institutional offer opens

T2 institutional offer opens. Strong institutional demand is expected as Telstra's weighting in the All Ordinaries Index after T2 expected to jump to 10 per cent (from 6.6 per cent after T1).

Kevin Morrison, 'Telstra Shop', The Sydney Morning Herald,
7 September 1999.

1 October 1999
T2 supplementary prospectus issued

The Government and Telstra issue a supplementary prospectus due to the announcement by the Government of changes to the Australian income tax system (particularly changes to the basis for taxing realised capital gains).

The Telstra 2 Share Offer, public advertisement, the Australian Financial Review,
1 October 1999.

7 October 1999
T2 retail share offer closes

Telstra 2 retail share offer closes. Over 1.3 million applications expected.

Kevin Morrison, 'Last- minute stampede on Telstra shares', The Sydney Morning Herald,
8 October 1999, p. 5.

15 October 1999
T2 institutional offer closes

Telstra 2 institutional share offer closes.

 

 

17 October 1999
T2 share allocations released

Retail allocation1,418 million shares or 66.4 per cent. Institutional offer715 million shares or 33.5 per cent. Over 400,000 new shareholders. Average share parcel928 shares.

Leone Wood, '$17b baptism of fire', The Sunday Age,
17 October 1999, pp. 12.

18 October 1999
Final price and allocation policy

Final pricing for T2 share completed $7.80 and $7.40.

  • First instalment of $4.75 per share for institutional investors discounted to $4.50 for Australian retail investors.
  • Second instalment of $3.05 per share for institutional investors discounted to $2.90 per share for Australian retail investors.
  • retail investors receive 66.5 per cent of shares
  • domestic institutions receive 20 per cent of shares
  • overseas institutions receive 13.5 per cent of shares.

The Telstra 2 Share Offer, public advertisement, Final price and allocation policy, The Australian Financial Review,
18 October 1999.

18 October 1999
T2 shares traded on stock exchange

Telstra 2 instalment receipts begin trading at 11.30am. The receipts open at $4.56 and close at $4.51. Telstra shares drop 41 cents to close at $7.37.

Leonie Wood, 'Shakey market wrecks hope of T2 stag profit', The Age,
19 October 1999.

29 October 1999
Final dividend paid

Final dividend paid $0.26 (ex-dividend date 20 September 1999)franking 38.46 per cent. Includes $0.16 special dividend. Shares purchased in the Telstra 2 Share Offer are not eligible for this dividend.

Telstra Investor RelationsDividend History

19 March 2000
Government announces inquiry into regional telecommunications

The Minister for Communications, Senator Richard Alston, announces the establishment of an independent inquiry to assess the adequacy of telecommunications services in metropolitan, regional, rural and remote areas (as required in the Coalition's 1998 election policy) prior to any sale of Telstra beyond its current level of 49 per cent private ownership. The inquiry will be conducted by Mr Tim Besley AO (chair), Mr Ray Braithwaite and Ms Jane Bennett and report to Senator Alston by 30 September 2000.

'Telecommunications Service Inquiry', press release by Senator the Hon. Richard Alston, Minister for Communications, Information Technology and the Arts, 19 March 2000.

28 April 2000
Interim dividend paid

Interim dividend paid $0.08 (ex-dividend date 20 March 2000) ranking 49.17 per cent.

Telstra Investor RelationsDividend History

30 August 2000
Telstra annual report for year ending 30 June 2000 released

  • Revenue$19 840 million
  • Profit (after tax, abnormals and minorities) $3677m
  • Total dividends provided for/paid $2316 million ($0.18 per share)

TelstraAnnual Report 2000.

30 September 2000
Telecommunications Service (Besley) Inquiry released

The Telecommunications Service Inquiry concludes that Australians generally have adequate access to a range of high quality, basic and advanced telecommunications services comparable to the leading information economies of the world. The inquiry research indicates that Australians who live in metropolitan and regional centres enjoy good telecommunication services and are generally satisfied with them. However, a significant proportion of those who live and work in rural and remote Australia have concerns regarding key aspects of services which, at this stage, are not adequate. Their concerns relate primarily to: the timely installation, repair and reliability of basic telephone services; mobile phone coverage at affordable prices; and, reliable access to the Internet and data speeds generally.

Connecting Australia: Report of the Telecommunications Service Inquiry, 30 September 2000.

27 October 2000
Final dividend paid

Final dividend paid $0.10 (ex-dividend date 18 September 2000)franking 100 per cent.

Telstra Investor RelationsDividend History

2 November 2000
Second instalment on T2 due

The second instalment receipt payment ($3.05 or $2.90 for Australian investors) for T2 shares due.

 

 

9 November 2000
Instalment receipt collection considered a success

The Telstra 2 final instalment collection process involved the collection of $6.31 billion from 1.48 million holders. Of this, $2.01 billion was to be collected from institutional holders and $4.30 billion from 1.48 million retail shareholders. The Commonwealth had received payment for 99.4 per cent of all shares issued, making the process more successful than Telstra 1 and CBA 3both of which had similar instalment processes. In total, $6.27 billion out of the $6.31 billion due had been collected by the Telstra Instalment Receipt Trustee, on behalf of the Commonwealth.

'Telstra 2 Share Offer collection Results', Press release, Minister for Finance and Administration, the Hon. John Fahey MP, 9 November 2000.

30 November 2000
ANAO completes performance audit report on T1 sale

Gross proceeds from the second tranche sale of Telstra shares are estimated to be $16.04 billion. Australian National Audit Office (ANAO) estimates the Commonwealth's direct costs to be $169 million. The sale costs represent 1.1 per cent of sale proceeds, a significant reduction compared to T1 (1.9 per cent). A significant factor in the reduced sale costs was the $88.8 million (51 per cent) reduction in payments to the major Telstra 2 advisers and the selling syndicate compared to Telstra 1.

Australian National Audit Office, Second Tranche Sale of Telstra Shares, ANAO, Canberra, 2000, p. 10.

27 April 2001
Interim dividend paid

Interim dividend paid $0.08 (ex-dividend date 19 March 2001)franking 100 per cent.

Telstra Investor RelationsDividend History

15 May 2001
Government releases response to Telecommunications Service Inquiry

The Government response to the Telecommunications Service Inquiry includes a funding package of $163.1 million to further improve telecommunications services in regional, rural and remote Australia.

'Listening and delivering on better regional telecommunications services', Press release, Senator the Hon. Richard Alston, Minister for Communications, Information Technology and the Arts, 15 May 2001.

29 August 2001
Telstra annual report for year ending 30 June 2001 released

  • Revenue$23 086 million
  • Profit (after tax, abnormals and minorities) $4058m

Total dividends provided for/paid $2445m ($0.19 per share)

TelstraAnnual Report 2001.

26 October 2001
Government reveals plans to sell rest of Telstra in 3 parts

The Treasurer reveals that the Government plans to sell the rest of Telstra in three equal instalments, pricing it at $5.49 a share.

AAP News

26 October 2001
Final dividend paid

Final dividend paid $0.11 (ex-dividend date 17 September 2001)franking 100 per cent.

Telstra Investor RelationsDividend History

10 November 2001
Howard Government re-elected

John Howard's Government re-elected for third term in Federal election. Further sale of Telstra is again a key communications policy issue.

 

 

12 February 2002
Opening of 40th Parliament

In opening speech to the 40th Parliament the Governor-general states 'The Government will not proceed with any further sale of Telstra until it is satisfied that arrangements are in place to deliver adequate services to all Australians'.

House of Representatives, Debates, 12 February 2002, Governor-General's speech, p. 22.

29 April 2002
Interim dividend paid

Interim dividend paid $0.11 (ex-dividend date 18 March 2002)franking 100 per cent.

Telstra Investor RelationsDividend History

16 August 2002
Dick Estens appointed to hold inquiry into regional telecommunications

Mr Dick Estens is appointed by the Government to conduct inquiry into regional telecommunications services. Other members include Jane Bennet and Ray Braithwaite. The inquiry is to report by November 2002.

'Regional Telecommunications Inquiry', press release by Senator the Hon. Richard Alston, Minister for Communications, Information Technology and the Arts, 16 August 2002.

28 August 2002
Telstra annual report for year ending 30 June 2002 released

  • Revenue$20 802 million
  • Profit (after tax, abnormals and minorities)$3661m
  • Total dividends provided for/paid $2831m ($0.22 per share).

TelstraAnnual Report 2002.

28 October 2002
Final dividend paid

Final dividend paid $0.11 (ex-dividend date 16 September 2002)franking 100 per cent.

Telstra Investor RelationsDividend History

6 November 2002
Regional Telecommunications Inquiry report released

Regional Telecommunications Inquiry report is released. The inquiry's overall assessment is that the Government had responded positively and comprehensively to the TSI findings, and that the arrangements that have been put in place are addressing the community concerns identified in the TSI report. The report makes a number of recommendations to improve areas where services still needed improvement and how arrangements should be put in place to provide a greater level of certainty of future ongoing benefits to regional, rural and remote communities.

'Connecting Regional Australia, Report of the Regional Telecommunications Inquiry',
6 November 2002.

30 April 2003
Interim dividend paid

Interim dividend paid $0.15 (ex-dividend date 17 March 2003)franking 100 per cent. Includes $0.03 special dividend.

Telstra Investor RelationsDividend History

25 June 2003
Government releases response to Regional Telecommunications Inquiry

The Federal Government accepts all 39 recommendations of the Regional Telecommunications Inquiry and announces plans to invest $181 million in response to key recommendations of the inquiry. Government response available at: http://www.telinquiry.gov.au/final_report.html

'Government response to Regional Telecommunications Inquiry', Joint press release, Senator the Hon. Richard Alston, Minister for Communications, Information Technology and the Arts and the Hon. John Anderson MP, Minister for Transport and Regional Services, 25 June 2003.

26 June 2003
Government introduces legislation to sell rest of Telstra

The Government introduces legislation Telstra (Transition to Full Private Ownership) Bill 2003 for the sale of its remaining shareholding in Telstra (subject to taxpayers receiving a fair price for their shares). See Bills Digest No. 10, 2003-04 Telstra (Transition to Full Private Ownership) Bill 2003 by Brendan Bailey, Department of the Parliamentary Library, Canberra.

House of Representatives, Debates, 26 June 2003, Telstra (Transition to Full Private Ownership) Bill 2003, First and Second Reading.

21 August 2003
Telstra sale Bill passes lower house

The Telstra (Transition to Full Private Ownership) Bill 2003 passes the lower house. Coalition backbenchers Alby Schultz and Kay Hull abstain from the vote.

House of Representatives, Debates, 21 August 2003, Telstra (Transition to Full Private Ownership) Bill 2003, Third Reading: pp. 18 79618 798.

27 August 2003
Telstra CEO reappointed until 2007

Telstra Corporation Chairman Bob Mansfield announces that the Telstra Board of Directors has reappointed Telstra Chief Executive Officer Ziggy Switkowski for a further term until 31 December 2007.

Telstra press release, 27 August 2003.

28 August 2003
Telstra annual report for year ending 30 June 2003 released

  • Revenue$21 616 million
  • Profit (after tax, abnormals and minorities) $3429m
  • Total dividends provided for/paid $2474 million ($0.27 per shareincludes special dividend $0.03 cents)
  • Final dividend announced$0.12 per share.

TelstraAnnual Report 2003.

8 September 2003
Telstra releases final response to Regional Telecommunications Inquiry

Telstra releases final response to Regional Telecommunications Inquiry. The response includes initiatives to further improve fixed telephone services to customers including:

  • addressing incidents of poor service performance and delays;
  • better managing congestion issues with certain types of small pair gain systems; and
  • streamlining new service connections for customers moving into newly-built residences.

Telstra response to the Regional Telecommunications Inquiry (Estens Inquiry)

     

Commonwealth of Australia
Chronologies are written for Members of Parliament, being located on the Internet they can be read by members of the public, however some linked items are available to Members of Parliament only, due to copyright reasons.

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