August 13, 2010 (Chinavestor) Telstra Corp., Australia's biggest telecom firm, will sell its take in SouFun, China's second-largest real estate Web site, to private equity firms General Atlantic and Apax Partners for about $400 million. The agreement values Telstra's 51 percent stake at more than $400 million, or $810 million for the entire company, according to Reuters.
Telstra will part with its stake while 25% of SouFun will go toward an initial public offering. Strategic investors will acquire the rest of SouFun. Analysts had believed the SouFun could be worth as much as $1 billion, but the $800 million price tag is well above the $500 million Telstra paid to acquire 51% of SouFun four years ago.
Telstra hopes to list SouFun on the New York Stock Exchange by October. Sources said the company is planning a $300 million IPO that is being managed by Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM) and UBS (NYSE:UBS), Reuters reported.
SouFun's top competitor is China Real Estate Information (Nasdaq:CRIC), which listed its shares in the U.S. last October. That IPO was worth $216 million.