In a move set to reshape its strategic priorities, Telkom has officially greenlit the sale of its masts and towers subsidiary, Swiftnet, to a consortium spearheaded by UK-based investment firm Actis. The US$371.5 million deal has now met all conditions required for completion.
The consortium acquiring Swiftnet, Towerco Bidco Proprietary Limited, is majority-owned by Actis, which holds a 70% stake. Royal Bafokeng Holdings, a South African investment group, controls the remaining 30%.
Telkom confirmed the update to shareholders on Monday, stating, “All suspensive conditions related to the sale agreement have been fulfilled. The parties are now proceeding to finalizefinalise the transaction per the agreement.”
This development follows regulatory approvals granted last year by the Competition Tribunal and the Independent Communications Authority of South Africa (ICASA). While the Competition Tribunal’s approval included certain conditions, the specifics of these conditions remain undisclosed.
A Strategic Shift for Telkom
The sale of Swiftnet’s portfolio of approximately 4,000 towers represents a cornerstone in Telkom’s strategy to streamline its focus on core operations while unlocking value from non-core assets.
“This marks a transformative moment for Telkom as we execute our data-led growth strategy under the OneTelkom vision,” said Telkom Group CEO Serame Taukobong.
He elaborated on the deal’s broader benefits, emphasizingemphasising its role in strengthening Telkom’s financial position. “The proceeds will bolster our balance sheet, reduce debt, and provide the necessary capital to invest in next-generation technology infrastructure,” Taukobong stated.
Additionally, the transaction aligns with Telkom’s ongoing efforts to restructure its asset portfolio, including selling other non-core properties and supporting its data-driven initiatives.
Ensuring Continuity and Collaboration
Taukobong reassured stakeholders that the sale would not change Telkom’s current operations. He pointed out that further utilizingutilising Swiftnet’s infrastructure is a significant part of the deal. “This deal guarantees seamless infrastructure access for Telkom Consumer and Openserve under mutually beneficial terms,” he added.
From Actis’ perspective, the acquisition is part of its broader ambition to expand its digital infrastructure portfolio. Actis’ managing partner, David Cooke, expressed confidence in Swiftnet’s long-term potential. “We see tremendous value in Swiftnet and are pleased to maintain an ongoing relationship with Telkom as a key partner,” Cooke said.
Actis’ Broader Moves in Digital Infrastructure
The Swiftnet acquisition follows Actis’ decision to exit its investment in fibre network operator Octotel. Actis had acquired a controlling stake in Octotel for US$126 million in 2020 but sold th
