By Stuart Condie

SYDNEY--Telstra Corporation Ltd. will divest Australia's second-largest private fiber-to-the-premises broadband network to Uniti Group Ltd. for 140 million Australian dollars (US$105.8 million).

Uniti on Wednesday said it had entered into a binding agreement to acquire the assets for an initial A$85 million upon completion. The communications provider said it will pay another A$20 million over three years, and A$35 million upon migration of services and assets.

The Telstra Velocity and South Brisbane Exchange actively services about 50,000 premises, with another 15,000 connected to the network, Uniti said.

Uniti said it will fund the acquisition through debt and an equity raising, comprising an underwritten A$50 million placement and A$10 million share purchase plan.

Uniti last month completed the acquisition of ASX-listed telecommunications infrastructure firm OptiComm.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

December 15, 2020 18:22 ET (23:22 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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