Telkom sheds Swiftnet in R6.75bn deal
Information and communication technology group Telkom has sold its masts and towers infrastructure subsidiary Swiftnet for R6.75-billion to consortium Towerco Bidco.
The newly incorporated entity Towerco Bidco comprises of equity investors led and managed by Actis, which holds 70% of the purchaser’s shares, with the balance of 30% held by Royal Bafokeng Holdings.
“This decision marks a pivotal moment in Telkom's journey towards unlocking shareholder value and streamlining our focus on core business operations. This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings,” said Telkom Group CEO Serame Taukobong, noting that the sale positions Telkom as a leading infrastructure company at the heart of South Africa's digital future.
The initiation of the sale agreement is a significant step forward in Telkom’s strategic transformation and contributes to fortifying its financial position, reducing debt and enhancing liquidity.
“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,” he continued.
Actis managing partner David Cooke added that Actis sees long term value in the Swiftnet opportunity and welcomed 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.
The transaction remains subject to shareholder and regulatory approvals.
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