Telkom is pursuing a separate listing of its masts and towers business, Swiftnet, on the Johannesburg Stock Exchange, the company announced on Tuesday.
Swiftnet is a Telkom subsidiary under management by Gyro.
With 6,225 masts and towers, Telkom says it is South Africa’s largest independently run tower portfolio.
Telkom’s share price increased on the news, and is up over 5% today.
Telkom Group CEO, Sipho Maseko, said the approach to separate Telkom’s businesses has enabled clear visibility of the growth potential of each business.
Under the management of Gyro, Swiftnet has diversified its tenancy with 56% of its tenants coming from the industry.
According to Maseko the current Telkom valuation is not a true reflection of its intrinsic value and that the value of the Swiftnet business is currently not being recognised.
“A separate listing of Swiftnet will affirm the valuation of the masts and towers business and its contribution to the overall valuation of the Telkom business thereby unlocking further value for Telkom,” stated Maseko.
The Telkom Board expects to make a final determination regarding a separate listing before the end of the financial year.