Compcom greenlights Telkom’s R7bn Swiftnet sale

Telkom has received approval from the Competition Commission to close the sale of its Swiftnet mast and tower business to a consortium of equity investors for R6.75bn. TowerCo Bidco is a newly established entity backed by the Actis Ohio Fund (70%) and Royal Bafokeng Infrastructure Investments (30%). The sale involves all shares in Swiftnet.

By Lindsey Schutters

1 Aug 2024

Source: Dylan Carr/Unsplash

Swiftnet is a key player in the South African telecom market, with a fleet of around 4,000 masts and towers that lease co-location space to major mobile network operators.

This extensive infrastructure is crucial for mobile connectivity across the country.

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Telkom CEO Serame Taukobong said that this decision is central to Telkom's goal of unlocking shareholder value and focusing on its core business operations.

By divesting Swiftnet, Telkom aims to enhance its financial position, reduce debt, and improve liquidity.

Awaiting regulatory approval

The transaction follows months of advanced negotiations, which began in August 2023.

Telkom entered an exclusivity period with the preferred bidder in late 2023, culminating in this sale agreement.

Telkom Consumer and Openserve will maintain access to Swiftnet's infrastructure under favourable terms, supporting seamless business continuity

While the deal awaits shareholder and regulatory approvals, Telkom remains optimistic about the potential benefits for all stakeholders.

Taukobong said when the deal was announced in March that believes this strategic move will create long-term value for Telkom and its shareholders, solidifying the company's position as a leader in South Africa's evolving digital landscape.