Telkom closes R6.75-billion deal

Telkom has concluded the sale of its masts and towers business, Swiftnet, to a consortium led by Actis and Royal Bafokeng Holdings.

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

The announcement comes after Telkom notified shareholders on Monday morning that the suspensive conditions relating to the R6.75-billion disposal have been fulfilled.

The Competition Tribunal and Independent Communications Authority of South Africa approved the proposed sale last year. The competition watchdog’s approval was conditional, and the precise conditions were undisclosed.

Telkom says that a portion of the sale proceeds will be allocated to reducing its debt and strengthening its balance sheet.

“The completion of the Swiftnet sale marks an important milestone for Telkom,” said Telkom Group CEO Serame Taukobong.

“This transaction enables us to pursue growth opportunities that align with our data-led growth strategy, strengthening our position as South Africa’s digital backbone.”

Telkom added that the sale of Swiftnet, which has a portfolio of roughly 4,000 masts and towers, is part of the telco’s pivot to focus on core operations.

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

“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.”

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 for an undisclosed sum.