Telkom plans to sell its towers to Actis. According to persons acquainted with the situation, Telkom’s mast and tower company, Swiftnet, is being negotiated for acquisition by private equity firm Actis.
Telkom Plans to Sell its Towers to Actis
The individuals who asked not to be named because they are not authorized to speak on the subject said that the agreement would also involve a smaller, local partner. According to an earlier statement from Telkom, Swiftnet is valued at up to R6.3 billion.
When Telkom announced in November that it was in exclusive talks with a preferred bidder consisting of a group of equity investors “including a black economic empowerment partner, led and managed by a reputable private equity firm,” the competitive disposal process for Swiftnet was set in motion. The success of the negotiations is not assured.
Portfolio of Digital Infrastructure in South Africa
The population of Africa is young, tech-savvy, and growing quickly. As a result, businesses have been investing in digital infrastructure assets to meet the increased demand for broadband as smartphones become more widely used.
Actis has been expanding its portfolio of digital infrastructure in South Africa; in 2020, it acquired the fiber business Octotel.
In the meantime, mobile carriers have been trying more and more to spin off their towers so they may concentrate on their main business. Vodacom has stated that it intends to split its tower portfolio into a new company in 2022.
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