Telkom R6.75-billion tower sale gets the nod

The Competition Tribunal has approved Telkom’s sale of its masts and towers business, Swiftnet, to a consortium led by UK-based investment firm Actis for R6.75 billion, with conditions.

This key approval comes after Telkom shareholders voted in favour of the deal, and the Competition Commission gave its blessing, recommending that the Tribunal approve the deal.

Telkom said the consortium accepted the conditions imposed by the Tribunal.

Actis holds a 70% stake in the consortium, Towerco Bidco Proprietary Limited, while Royal Bafokeng Holdings owns the remaining 30%.

Telkom said 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.

The company said the move underscores its commitment to fortifying its financial position, reducing debt, and enhancing liquidity.

“This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations,” said Telkom Group CEO Serame Taukobong.

Taukobong said that beyond the financial implications, the transaction ensures seamless continuity for Telkom’s related businesses, particularly Telkom Consumer and Openserve.

He said the deal guarantees continued access to Swiftnet’s infrastructure under mutually beneficial terms.

“Actis sees long-term value in the Swiftnet opportunity and welcomes the continued association with Telkom as it continues to provide access services to Telkom Consumer and Openserve and as Actis continues to grow its digital infrastructure portfolio,” said Actis managing partner David Cooke.

Actis invests in energy, digital, and long-life infrastructure, as well as real estate and private equity. The Royal Bafokeng Group’s investments lie with minority interests across diverse sectors.