Big announcement about R6.75-billion Telkom deal

Telkom has announced that the sale of its masts and towers business Swiftnet to a consortium led by UK-based investment firm Actis is clear to proceed.

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

Telkom notified shareholders on Monday morning that the suspensive conditions relating to the R6.75-million disposal have been fulfilled.

“The parties are accordingly proceeding to take the necessary steps to closing of the disposal in accordance with the sale agreement,” Telkom said.

This comes after the Competition Tribunal and Independent Communications Authority of South Africa gave their approvals last year. The competition watchdog’s approval was conditional, with the precise conditions undisclosed.

Telkom previously said the sale of Swifnet’s approximately 4,000 towers and masts marked a significant step in Telkom’s transformative strategic journey to focus on core operations while realising the value in non-core assets.

“This transaction is a pivotal moment in Telkom’s implementation of our data-led strategy under OneTelkom,” said Telkom Group CEO Serame Taukobong.

“The sale will strengthen our balance sheet, reduce debt, and provide additional capital. This will enable us to focus our investment in next-generation technology infrastructure.”

“We continue to make progress on the alignment of our asset portfolio and our disposal of non-core properties in support of our data-led growth.”

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.

Actis’ purchase of Swiftnet comes as the firm exited its investment in fibre network operator Octotel.

Actis acquired a controlling stake in Octotel for R2.3 billion in 2020. A consortium led by African Infrastructure Investment Managers announced in March that it agreed to acquire Octotel from Actis.