Telstra won't tell shareholders how it plans to spend the billions of dollars generated by the recent sale of assets including Sensis and Hong Kong mobile provider CSL until its full year results in August.
In a statement to the Australian Securities Exchange on Wednesday, Telstra confirmed it had finalised the sale of its 76.4 per cent stake in CSL after it was approved by Hong Kong regulators earlier this month.
Telstra said the deal would get it $US1.99 billion, representing a profit of $561 million for the company.
But Telstra shareholders who have been eagerly awaiting news on how the company will spend the cash will now have to wait until August.
Potential paths for the company include an accelerated increase in dividends, new acquisitions or a potential share buyback scheme – the latter being considered the least likely option.
"The net proceeds are incremental to Telstra's free cashflow guidance of $4.6 billion to $5.1 billion in FY14," it said in the statement. "Telstra ... will provide a further update to the market when it announces its full year results in August 2014."
Telstra sold a 70 per cent stake in its Sensis directories business to US private equity firm Platinum Equity for $454 million in January but refused to tell shareholders how it would spend any of the money until after its CSL deal was completed.
Telstra chief financial officer Andy Penn had previously advised that the deal would be done by the end of March 2014.
But approval was delayed after a push by rival Hong Kong telecommunications companies to get an extension for submissions.
Senior fund managers with significant holdings in Telstra had expected Mr Penn to provide an update on the company's plans for the warchest, which could be worth up to $7 billion, soon after March.
The deal was announced in December and seen by most analysts and shareholders as a done-deal.