Telkom SA, a leading South African ICT company, has announced a significant step forward in its strategic transformation with the initiation of a sale agreement for all shares in its wholly owned subsidiary, Swiftnet for R6,75 billion.
Swiftnet, a key player in the South African market, is renowned for its extensive masts and towers infrastructure, boasting approximately 4000 installations and leasing co-location space to major mobile network operators.
“This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations,” stated Serame Taukobong, Group CEO at Telkom. 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.”
The disposal entails the sale of Swiftnet to the purchaser, Towerco Bidco Proprietary Limited, a newly incorporated entity comprising of a consortium 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 move underscores Telkom’s commitment 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,” highlighted Serame Taukobong.
“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 David Cooke, Managing Partner at Actis.
While subject to shareholder and regulatory approvals, Telkom remains optimistic about the transaction’s potential benefits for all stakeholders. “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,” concluded Taukobong.
