Telkom has officially completed the sale of its masts and towers business, known as Swiftnet, to a consortium spearheaded by Actis and Royal Bafokeng Holdings. This strategic move marks a significant shift in Telkom’s operational focus and financial strategy.
In this consortium, Actis holds a commanding 70% stake in Towerco Bidco Proprietary Limited, while Royal Bafokeng Holdings retains the remaining 30%. The announcement of this transaction follows Telkom’s notification to its shareholders on Monday morning, confirming that all suspensive conditions related to the R6.75 billion sale have been successfully met.
The sale was previously approved by both the Competition Tribunal and the Independent Communications Authority of South Africa (ICASA) last year. However, the approval from the competition watchdog came with certain undisclosed conditions that were deemed necessary for the transaction to proceed.
Telkom has indicated that a portion of the proceeds from this sale will be utilized to reduce its existing debt and enhance its overall balance sheet. “The completion of the Swiftnet sale marks an important milestone for Telkom,” stated Serame Taukobong, the Group CEO of Telkom. He emphasized that this transaction will enable the company to explore growth opportunities that are in line with its data-led growth strategy, thereby reinforcing its role as the digital backbone of South Africa.
The sale of Swiftnet, which boasts a portfolio of approximately 4,000 masts and towers, is part of Telkom’s broader strategy to concentrate on its core operations. Taukobong remarked, “This transaction is a pivotal moment in Telkom’s implementation of our data-led strategy under OneTelkom.”
He further elaborated that the sale will not only strengthen the company’s balance sheet and reduce debt but will also provide additional capital that can be reinvested into next-generation technology infrastructure. Telkom continues to make strides in aligning its asset portfolio and divesting non-core properties to support its data-led growth objectives.
Actis’ acquisition of Swiftnet comes on the heels of its exit from its investment in the fibre network operator Octotel. Actis had previously acquired a controlling stake in Octotel for R2.3 billion in 2020. In March, a consortium led by African Infrastructure Investment Managers announced that it had reached an agreement to acquire Octotel from Actis for an undisclosed amount, marking another significant transition in the telecommunications landscape.
