Telkom to sell towers to Actis, Royal Bafokeng

Published: 2024-03-22 07:33 +02:00 by Duncan McLeod tag: Telecoms

Telkom has reached an agreement sell Swiftnet in a deal that gives the towers unit an enterprise value of R6.75-billion.

Telkom Group CEO Serame Taukobong

Telkom has reached an agreement with a consortium made up of Actis and Royal Bafokeng Holdings to sell Swiftnet, and towers and masts business, in a deal that gives Swiftnet an enterprise value of R6.75-billion.

If successfully concluded, Telkom will join rivals MTN South Africa and Cell C in selling tower infrastructure so as to focus on core business operations, leaving only Vodacom among the major mobile operators still owning its own towers.

Telkom will sell Swiftnet to a newly created business called Towerco Bidco, which is 70% held by Actis, a global private equity firm, and 30% by Royal Bafokeng Holdings.

It underscores Telkom’s commitment to fortifying its financial position, reducing debt and enhancing liquidity

“This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations,” Telkom Group CEO Serame Taukobong said in a statement on Friday. Swiftnet owns about 4 000 high sites around South Africa.

“This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings… This move underscores Telkom’s commitment to fortifying its financial position, reducing debt and enhancing liquidity,” he said.

“Beyond the financial implications, this transaction ensures seamless continuity for our related businesses, particularly Telkom Consumer and Openserve, by guaranteeing continued access to Swiftnet’s infrastructure under mutually beneficial terms,” Taukobong added.

Read: Telkom wants next spectrum auction postponed

The acquisition must still get the nod from shareholders and regulators. – © 2024 NewsCentral Media

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