Telkom has kicked off the sale of a stake in its fibre business, as it seeks to unlock value for shareholders and boost profit.
The partially state-owned telecommunications group is working with Bank of America to gauge interest in the Openserve business from potential investors and strategic partners, a spokesman said in an e-mailed response to queries.
A representative for Bank of America declined to comment.
Openserve operates around 170 000km of fibre and legacy landline copper cables. Telkom said in February that it had received a number of expressions of interest in the business, and that a formal sales process would be launched by the end of its 2023 fiscal year.
The JSE-listed company is also in the process of selling its towers unit, which has attracted interest from independent tower operators including IHS Towers.
Telkom intends to update shareholders on its plans when it presents annual results in June, the spokesman said.
Shares in Telkom have fallen about 25% over the last 12 months, giving it a market value of R17.2-billion. MTN Group made an approach to buy Telkom in its entirety last year before talks about a deal stalled.