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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Acquisitions»Telkom sells tower business Swiftnet to Towerco Bidco for $343 million
    Serame Taukobong, Telkom Group CEO

    Telkom sells tower business Swiftnet to Towerco Bidco for $343 million

    0
    By Tapiwa Matthew Mutisi on March 24, 2024 Acquisitions, Africa, Business, Infrastructure, Investments, Technology, Telecoms

    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.

    Telkom half-year profit jumps on lower depreciation cost

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    Acquisition Africa Business CEO CEO Serame Taukobong Infrastructure Investments mobile operator Swiftnet Technology telecommunications Telkom Towerco Bidco Proprietary Limited
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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