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South Africa’s Telkom Set to Sell its over $350 Million Mast and Tower Business to UK-based Actis
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The Competition Tribunal, following a recommendation from the Competition Commission, has approved Telkom’s sale of Swiftnet, the company’s masts and towers business.
The sales to Towerco Bidco, a new entity owned by Actis and Royal Bafokeng, were approved with certain conditions, which were accepted by the purchaser.
Competition Commission Approves Telkom Sale Of Swiftnet
Actis holds a 70% stake in the entity, Towerco Bidco Proprietary Limited, while Royal Bafokeng Holdings owns the remaining 30%.
Recall, that in March 2024, Telkom entered into a deal with a consortium led by Actis, agreeing to sell Swiftnet for an enterprise value of R6.75 billion (approximately over $350 million), structured as a combination of debt and equity.
However, the sale agreement was pending approval from shareholders and regulators.
Nonetheless, a shareholders’ vote called for in April, and in May, favored the transaction. The Telco’s shareholders, including the South African government, which possesses a 40.5% share of Telkom, were involved in the vote casting.
Telkom highlighted that Swiftnet has around 4,000 sites nationwide and leases co-location space to major mobile network operators. It also provides wireless in-building solutions within public infrastructure buildings.
Also Read: Telkom Set to Announce Sale of Swiftnet Tower and Masts in April
Telkom Swiftnet Sales To Fortify Its Financial Position
This development was disclosed in a report to Telkom’s shareholders, confirming the tribunal’s sanctioning of the transaction.
According to the Competition Commission, the deal was unlikely to substantially lessen or prevent competition in any market. However, it advised that “public interest concerns” be addressed.
However, the company highlighted the decision underscores its commitment to fortifying its financial position, reducing debt, and enhancing liquidity.
Telkom Group CEO, Serame Taukobong, said: “This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations.”
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