• Wed. Dec 6th, 2023

Exclusive Talks About Selling Tower Business by Telkom South Africa

ByEditor

Nov 21, 2023

Telkom, South Africa’s third-largest telecom company, is in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. A consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid. The company has spun off its telecom towers and masts into a separate unit to explore options to unlock the undervalued business because it was trapped in the group structure.

As part of its reorganization process, Telkom is transitioning itself into an infrastructure company to drive strategic growth through consolidating core assets. The move reflects the company’s efforts to reposition itself and drive strategic growth by exploring potential sales and partnerships to unlock the value of its business divisions.

The reorganization process is expected to be fully operational by the end of 2025. Once the infrastructure company structure is in place and the masts and towers transition is concluded, Telkom will consider further opportunities to realize value, including minority partnerships for Openserve and a strategic equity partner for BCX – its fibre and ICT businesses.

Overall, the company is working towards a stronger and more efficient business model in the future.

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