Australian telecommunications giant Telstra has revealed that it is all set to sell the 51% stake it owns in the online Chinese real estate business, SouFun Holdings Ltd., as businesses go higher on the Hong Kong stock exchange, the Hang Seng.

"Telstra proposes to sell down its shareholding as part of that process. Subject to regulatory requirements, further details will be provided as the process proceeds", the company said in an official statement while announcing the plans on Wednesday.

The other shareholders of the Chinese business, which include the US venture capital group IDG and Executives, have reportedly agreed to the proposal and have already started to prepare the business for an IPO in 2010.

SouFun, which is one of Telstra's largest media investments, gets an estimated 95% of its revenues from online property advertising alone.

The stake was purchased by the telecom company in August 2006, for US$254 Million. The deal had been closed under the then Chief Executive Sol Trujilo.