Telkom announced in a press statement today (21 December 2013) that it has sold its Pan African business, iWayAfrica and Africa Online Mauritius, to Gondwana International Networks.
The deal was concluded late-afternoon on Friday, 20 December 2013, Telkom said, adding that the companies were “an immaterial part of the Group”.
“This transaction is one of many initiatives that will contribute to our own turnaround allowing us to focus on our core South African fixed-line and mobile operations,” Telkom Group Chief Executive Officer, Sipho Maseko was quoted as saying.
“We are also pursuing several other initiatives in a coordinated manner to restore Telkom’s financial health,” Maseko said.
Telkom explained that iWayAfrica was formed as the result of the amalgamation of Mweb Africa and Africa Online in 2007 when Mweb Africa was purchased by Telkom SA.
Maseko said that Telkom has struggled to drive growth and profitability in the iWayAfrica business since it was acquired.
“Several years of poor performance of the iWay Group has resulted in continued negative EBITDA contribution to our Group,” Maseko said.
He added that Telkom was of the view that Gondwana has the tangible experience of managing and owning ISPs on the African continent, and believes that this is beneficial in taking the business forward.
“It is important to note that Telkom’s investment in iWayAfrica was already fully impaired during the 2012 financial year and a sale at this time made perfect sense,” Maseko said.
“We have spent the year concentrating our efforts on stabilising our South African business and our focus now is on reviving Telkom SA’s full performance potential,” he concluded.