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%.
Swiftnet encompasses approximately 4,000 sites nationwide and leases co-location space to major mobile network operators, according to Telkom.
The decision to sell underscores Telkom's commitment to strengthening its financial position, reducing debt, and enhancing liquidity, the group said.
"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.”
He said that the transaction ensures seamless continuity for Telkom’s related businesses, particularly Telkom Consumer and Openserve, with 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 expressed optimism about the strategic move, believing it will create long-term value for the company and its shareholders, solidifying its position as a leader in South Africa’s evolving digital landscape.
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