Telkom sells its towers for R6.75 billion

Telkom has announced the initiation of a R6.75-billion sale agreement for its Swiftnet masts and towers business to a consortium led by UK-based investment firm Actis.

Actis holds a 70% stake in the consortium, Towerco Bidco Proprietary Limited, while Royal Bafokeng Holdings owns the remaining 30%.

Telkom said Swiftnet has around 4,000 sites nationwide and leases co-location space to major mobile network operators.

It said the move underscores its 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,” said Telkom Group CEO Serame Taukobong.

“This positions Telkom as a leading infrastructure company at the heart of South Africa’s digital future. This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings.”

Taukobong said that beyond the financial implications, the transaction ensures seamless continuity for Telkom’s related businesses, particularly Telkom Consumer and Openserve.

He said the deal guarantees continued access to Swiftnet’s infrastructure under mutually beneficial terms.

“Actis sees long-term value in the Swiftnet opportunity and welcomes the continued association with Telkom as it continues to provide access services to Telkom Consumer and Openserve and as Actis continues to grow its digital infrastructure portfolio,” said Actis managing partner David Cooke.

Although subject to shareholder and regulatory approvals, Telkom said it is optimistic.

“We believe this strategic move will create long-term value for Telkom and its shareholders, cementing our position as a leader in South Africa’s evolving digital landscape,” Taukobong said.