Telkom South Africa has recently concluded the sale of its subsidiary, Swiftnet, which specializes in mast and tower infrastructure, to a consortium of investors for a significant sum of $357 million. This landmark deal, unveiled in March, sees the emergence of Towerco Bidco as the new entity, with Actis securing a commanding 70% stake and Royal Bafokeng Holdings taking up the remaining 30%.
The CEO of Telkom, Serame Taukobong, hailed this transaction as a momentous stride towards amplifying shareholder value and refocusing on the core operations that drive the company's growth trajectory. This strategic decision is perfectly aligned with Telkom's overarching strategy to concentrate its resources on infrastructure assets while divesting from non-core holdings.
Swiftnet, boasting an extensive network comprising approximately 4,000 installations, stands tall as one of the foremost owners and operators of mast and tower infrastructure in South Africa. Through leasing arrangements with major mobile network operators, Swiftnet plays a pivotal role in the country's telecommunications landscape. Telkom had initially announced its intentions to divest its portfolio of 4,000 towers back in November 2023, underscoring its commitment to refining its focus on connectivity infrastructure.
Telkom's decision to part ways with its tower assets aligns it with industry peers such as MTN SA and Cell C, who have pursued similar strategies. This concerted effort is aimed at bolstering Telkom's financial standing, mitigating debt burdens, and augmenting liquidity reserves, thereby positioning the company for sustained growth and innovation. Furthermore, the sale ensures seamless continuity for Telkom's related businesses by securing continued access to Swiftnet's infrastructure on favorable terms.
While awaiting the necessary approvals from shareholders and regulatory bodies, Telkom remains optimistic about the anticipated benefits of this transaction for all stakeholders involved. This move not only underscores Telkom's commitment to excellence but also solidifies its position as a frontrunner in driving the evolution of South Africa's digital landscape.