Australia Fin Min: Telstra Share Offer Opens Oct 23

CANBERRA -(Dow Jones)- The Australian government will open its A$8 billion Telstra share sale on Monday Oct. 23, Finance Minister Nick Minchin said Friday.

Details of the price of the stock and the size of the discount offered to retail investors will be outlined in a prospectus, to be issued on Monday Oct. 9, Minchin said in a statement.

The government is offering Telstra shares, a process dubbed T3, as it divests its remaining 51.8% stake in the telecommunications company.

About A$15 billion of shares will be transferred to the Future Fund, an arm's length investment vehicle set up to pay future public service pension liabilities, where they will be held in escrow for two years.

Minchin said a A$20 million T3 advertising campaign will begin on Monday Oct. 2.

Also from Oct. 2, investors will be able to reserve a T3 prospectus and a share offer website and telephone hotline will become operational.

Minchin confirmed retail investors will be offered shares at a discount to institutional investors. Investors will pay for T3 shares in two installments over 18 months.

"The price of the first installment and the size of the retail discount will be detailed in the prospectus, along with the benefits and risks of the investment," Minchin said.

The government also announced eight banks had been appointed to the T3 institutional selling syndicate.

Citigroup, Credit Suisse, Daiwa, JPMorgan, Lehmann Brothers and Morgan Stanley will be co-lead managers, with CommSec, RBC appointed co-managers.

"These eight banks will play a key role in supporting the joint global coordinates of ABN Amro, Goldman Sachs JBWere and UBS for the Telstra sale in selling shares to domestic and international institutions," Minchin said.

-By Barbara Adam, Dow Jones Newswires; 61-2-6208-0901;
barbara.adam@dowjones.com
-Edited by Paul Dekkers

(END) Dow Jones Newswires "

Posted to the site on 29th September 2006