Actis, a private equity firm, is reportedly in discussions to acquire Swiftnet, the mast and tower business owned by South Africa’s Telkom, along with a smaller local partner.
BMA understands that Swiftnet is valued at up to US$336 million, as previously stated by Telkom, though neither Actis nor Telkom has commented on the matter.
Telkom began a competitive disposal process for Swiftnet in November. It was in talks with a preferred bidder consisting of equity investors, including a black economic empowerment partner managed by a reputable private equity firm. The talks may or may have yet to be concluded successfully.
Firms have been acquiring digital infrastructure assets in Africa to capitalise on the fast-growing, youthful, and tech-savvy population, as well as the increasing demand for broadband due to the widespread use of smartphones. In 2020, Actis acquired the fibre company Octotel and has since expanded its digital infrastructure portfolio in South Africa.
Mobile companies have been spinning off their towers to focus on their core business, with Vodacom intending to create a new unit for its tower portfolio in 2022. In 2022, MTN Group concluded a sale and lease-back deal with IHS Holding for over 5,700 tower sites in South Africa.
