Telstra and Hong Kong telecommunications holding company, PCCW, have agreed to a restructure of assets for their joint venture business, Reach. This will see Telstra make an accounting gain of up to $150 million.
PCCW owns stock in Hong Kong telco, HKT Group Holdings.
The pair entered into Asia-Pacific centric joint venture agreements in 2001 and launched Reach to merge the international IP infrastructure of both companies, Regional Wireless Company and Data Centre Company.
Telstra and PCCW both owned half of Reach’s assets which will now be divided between the two businesses.
According to the telco giant, the restructuring provides Telstra with greater control over the platform used to deliver services to enterprise service provider customers.
The restructuring is set to be completed by mid-2011,