More Africa NewsSouth Africa: Telkom sells Swiftnet, its telecom tower unit

July 21, 2023by myles0

Telkom initially planned to list its telecom tower unit on the stock exchange independently of its general business. The company suspended the project in March 2022, citing the effects of the Russia-Ukraine war on financial markets.

South African mobile operator Telkom has begun the process of selling its telecom tower unit, Swiftnet. This was revealed by Serame Taukobong (pictured), Chairman and CEO of the company, in a recent interview with Moneyweb . The company hopes to finalize the transaction “  within one or two months  “, we learn.

Mr Taukobong said the process was very advanced and there were two strong bidders for Telkom’s tower portfolio. If the identity of the potential buyers has not been revealed, Bloomberg reported in February that IHS Holding was interested in Swiftnet.

The sale of Swiftnet is part of   Telkom’s “ unlocking value ” strategy. As early as 2021, the company had planned to list its telecom tower business separately on the Johannesburg Stock Exchange (JSE). However, the project was suspended in March 2022, in particular due to the effects of the Russia – Ukraine war on the financial markets.

“  The cash inflow from the sale of the towers will help us rebalance our balance sheet and further invest in capital expenditure for our fiber optic business  ,” Taukobong said. The company can also invest in upgrading and expanding its telecommunications network to be more competitive in the domestic market where it competes with Vodacom, MTN, Cell C and Rain.

Source: Agence Ecofin

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