South Africa’s Telkom sells its Swiftnet towers for more than $355 million. Telkom has sold its Swiftnet masts and towers business to a consortium consisting of the UK-based investment firm Actis and Royal Bafokeng Holdings for R6.75 billion ($355.4 million).
South Africa’s Telkom Sells Its Swiftnet Towers
Telkom’s decision to sell its Swiftnet masts and towers business to a consortium led by Actis and Royal Bafokeng Holdings for R6.75 billion ($355.4 million) is aimed at strengthening its financial position, reducing debt, and enhancing liquidity.
Actis, holding a 70% stake, and Royal Bafokeng Holdings, holding a 30% stake, will acquire Swiftnet, which provides co-location space to major mobile network operators with about 4,000 locations in South Africa.
How This Sale Aligns With Recent Trends in the South African Telecom Industry
This sale aligns with recent trends in the South African telecom industry, with Vodacom being the sole remaining company owning tower infrastructure after MTN South Africa and Cell C opted to sell off their tower assets to focus on core business operations.
Telkom Group CEO Serame Taukobong emphasized that the sale represents a significant step in Telkom’s efforts to unlock shareholder value and focus on core business operations. The transaction also ensures seamless continuity for related businesses, particularly Telkom Consumer and Openserve, by ensuring continued access to Swiftnet’s infrastructure.
How the Said Acquisition Will Be Financed
The consortium will finance the acquisition with equity and third-party debt, pending approval from both shareholders and regulators. Telkom has been divesting its towers to investors, including Black Economic Empowerment partners led by reputable private equity firms, since November 2023, in compliance with Johannesburg Stock Exchange (JSE) requirements.
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