TLSYY Telstra Corporation Limited (PK)

   By Gavin Lower 
 

MELBOURNE--Telstra Corp. (TLS.AU) said Thursday it will sell its New Zealand subsidiary TelstraClear to Vodafone New Zealand for 840 million New Zealand dollars (US$669.2 million).

"The deal is a natural one, bringing together TelstraClear's fixed telecommunications and data products and corporate client base with Vodafone New Zealand's mobile offering and retail customer base," Telstra Chief Executive David Thodey said in a statement.

TelstraClear is one of New Zealand's largest full-service communications companies.

Telstra said it would return NZ$490 million in cash to Australia and book impairments of around A$130 million in fiscal 2012 and about A$130 million in fiscal 2013 largely because of unrealized foreign currency losses.

The sale is subject to New Zealand regulatory approval which is likely to take several months.

Write to Gavin Lower at gavin.lower@wsj.com