Final hurdle for SwiftNet sale: Icasa to approve license transfer

Telkom has reached a critical milestone in its restructuring strategy with the Icasa receiving an application to transfer the control of Individual Electronic Communications Network Service (I-ECNS) and Individual Electronic Communications Service (I-ECS) licences from SwiftNet to TowerCo BidCo. This follows the recent approval of the R6.75bn SwiftNet sale.

By Lindsey Schutters

16 Sep 2024

Final hurdle for SwiftNet sale: Icasa to approve license transfer

This step of the process will transfer SwiftNet’s approximately 4,000 masts and towers – that provide essential colocation services to major mobile network operators – to the new owners.

These assets are vital for mobile connectivity across the country, underpinning South Africa’s telecom infrastructure.

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The consortium behind TowerCo BidCo includes the Actis Ohio Fund, which holds a 70% stake, and Royal Bafokeng Infrastructure Investments, owning the remaining 30%.

Telkom says the sale is a key strategic move as it seeks to unlock shareholder value, reduce debt, and improve liquidity.

Public participation

As part of the regulatory process, Icasa is inviting public participation on the transfer of these critical licences.

The Competition Commission approval and 30% stake held by Royal Bafokeng Infrastructure Investments already meets the Icasa requirements, so this is largely a formality.

This transaction is the result of extensive negotiations dating back to August 2023, and while it awaits final shareholder and regulatory approvals, it is viewed as a major shift in the South African telecoms landscape.