Telkom, a leading telecommunications company in South Africa, has announced that it is in advanced talks to sell off its Swiftnet tower and masts portfolio to a consortium of equity investors led by a reputable private equity firm.
The company has made substantial progress on meeting the remaining agreed milestones with the prospective buyer, including negotiations to settle on the transaction’s details. If successfully concluded, the deal will be subject to customary conditions, including receiving required regulator approvals and Telkom shareholder approval.
The sale of Swiftnet will help Telkom bolster its balance sheet and invest more in capex for its fibre business. However, the negotiations may still not lead to a transaction, and Telkom has advised its shareholders to be cautious when dealing in its securities until it makes a further announcement.
Telkom had planned to list its masts and towers business on the JSE by the end of 2022. However, the initial public offering was delayed due to unfavourable market conditions related to Russia’s invasion of Ukraine. In July 2023, Telkom CEO Serame Taukobong said they were negotiating with two bidders at the time, and hopefully, in the next month or two, they would be able to announce a successful sale.
Telkom recently removed its branding from its iconic Lukasrand tower near Groenkloof in Pretoria, but the company stated that it was only for maintenance and refresh.
