By Stuart Condie

SYDNEY--Telstra Corp. will return about 1.40 billion Australian dollars (US$1.05 billion) to shareholders after agreeing to sell a 49% stake in its mobile towers business to a consortium including Australia's sovereign wealth fund.

Australia's largest communications provider on Wednesday said a consortium comprising Australia's sovereign Future Fund and two superannuation funds--Commonwealth Superannuation Corporation and Sunsuper--will acquire the stake in a deal valuing the unit at A$5.9 billion.

Telstra said it expected net cash proceeds after transaction costs of A$2.8 billion at completion in the first quarter of fiscal 2022, and that it would return about half to shareholders during that financial year.

Chief Executive Andrew Penn said Telstra will invest about A$75 million in its regional network, with the remaining proceeds directed toward debt reduction.

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

(END) Dow Jones Newswires

June 29, 2021 18:54 ET (22:54 GMT)

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