South Africa’s third-largest mobile operator, Telkom, has announced the sale of its tower company, Swiftnet, for a total of $343 million (R6.5 billion), to Towerco Bidco Proprietary Limited, a consortium of equity investors led and managed by Actis, which holds 70% of the purchasers’ shares, while Royal Bafokeng Holdings holds the remaining 30% stake.
Swiftnet, which has an extensive mast and tower infrastructure with over 4,000 installations and leased co-location space to major mobile network providers, has been sold after nearly three years of seeking prospective buyers.
This sale aligns with Telkom’s strategic objectives, as the company has been looking to maximize shareholder value. The decision to part ways with Swiftnet had been first revealed in September 2021 by then-CEO Sipho Maseko, stating that the unit’s value wasn’t appropriately reflected in the company’s shares.
Towerco Bidco is a new entity formed by a consortium of equity investors, led and managed by Actis, holding a 70% stake, while the remaining 30% is held by Royal Bafokeng Holdings.
Telkom’s decision to offload Swiftnet aligns with the company’s broader goal of focusing on core business operations and enhancing its financial position, reducing debt, and improving liquidity.
The current Telkom Group CEO, Serame Taukobong, sees the sale as a critical step towards unlocking shareholder value. He also emphasized that the transaction ensures uninterrupted continuity for related businesses, especially Telkom Consumer and Openserve, by assuring continued access to Swiftnet’s infrastructure.
Actis managing partner David Cooke sees long-term potential in Swiftnet, and is looking forward to continuing collaboration with the telecom group to offer access services to Telkom Consumer and Openserve. While the transaction still requires shareholder and regulatory approvals, Telkom is optimistic about its potential benefits.
