Join our daily newsletter At The Bell to receive exclusive market insights
- Vita Group (VTG) is planning to sell its retail Information and Communication Technology business to Telstra Corporation (TLS) for $110 million
- The sale comes after the telco giant announced it would stop using Vita’s Telstra branded store network and instead focus on self-owned stores
- Post-sale, VTG proposes to issue a fully franked special dividend to its shareholders worth between $65 million and $75 million
- It also plans to hold on to around $35 million in funds to help further grow its Artisan Aesthetic Clinics business
- VTG shares have slipped 4.59 per cent to 88.3 cents each
Vita Group (VTG) is planning to sell its retail Information and Communication Technology business to Telstra Corporation (TLS) for $110 million.
The announcement comes after the telco giant announced in February this year it would stop using Vita’s Telstra branded store network.
Instead Telstra said it would begin transitioning to a purely TLS-owned store network, concluding its contract with Vita in 2025.
VTG affirms the sale of its telco assets to Telstra will provide value to its shareholders, with the company set to issue a special dividend post sale.
The fully franked dividend will cost the company between $65 million and $75 million, representing between 39 cents and 40 cents per share.
The special dividend will be paid in two payments and will come with attached franking credits of between 17 cents and 19 cents per share.
Additionally, Vita plans to hold on to around $35 million in funds to help further grow its Artisan Aesthetic Clinics business
Vita Group Chairman Dick Simpson said given Telstra’s decision in February, this sale was the best course of action.
“This agreement represents good value for our shareholders and provides certainty in a highly challenging and dynamic telecommunications market,” Mr Simpson said.
“The Vita Board unanimously supports the offer and believes that Vita is
best positioned to succeed in the future, in the growing skin health and wellness industry.”
Vita Group shares have slipped 4.59 per cent to 88.3 cents each at 12:58 pm AEST.
