Telstra has announced it plans to float its half-owned Chinese real estate website in 2010 and could be in line for a big profit on the deal.
The telco’s announcement comes as clothing company Retail Apparel Group also prepares to float on the Australian Securities Exchange in an initial public offering that could be worth as much as $300 million.
Telstra bought its 51% stake in Chinese real estate website SouFun for $US254 million in August 2006, during the reign of former chief executive Sol Trujillo.
SouFun is China’s biggest real estate site, and increased annual earnings by 88% to $US50 million in 2007-08. According to reports, the company’s revenue increased 55.1% in the last financial year.
Telstra says it will sell its entire stake via the float.
According to a report in the Australian Financial Review, Retail Apparel Group is in the process of looking for advisers on its float, tipped to occur early next year.
The company, owned 45% by private equity firm CHAMP Ventures, was previously known as Tarocash Enterprises and owns the Tarocash, Connor and yd clothing brands.
Tarocash has 74 retail stores, while yd has 50 stores.
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