Telkom SA has obtained approval from the Independent Communications Authority of South Africa (ICASA) for the disposal of its masts and towers business housed in Swiftnet.
The proposed R6.75 billion deal will see TowerCo acquiring Swiftnet from Telkom.
Swiftnet, a key player in the South African market, has extensive masts and towers infrastructure, with approximately 6 200 installations, and it leases co-location space to major mobile operators.
By disposing of Swiftnet, Telkom is looking to unlock shareholder value and focus on its core business operations.
Earlier this year, the majority of Telkom shareholders voted in favour of the proposed transaction.
According to a statement, this marks the final major regulatory requirement for the R6.75 billion transaction to a consortium led by Actis, alongside Royal Bafokeng Holdings.
Further, ICASA’s approval, which results in a change of control of Swiftnet's licences, comes after unanimous shareholder approval secured in May 2024, and Competition Tribunal approval obtained in September 2024, says the statement.
The sale of Swiftnet's portfolio of approximately 4 000 towers and masts marks a significant step in the implementation of Telkom's transformative strategic journey to focus on core operations while realising the value in non-core assets.
“This transaction is a pivotal moment in Telkom's implementation of our data-led strategy under OneTelkom,” says Telkom Group CEO Serame Taukobong.
“The sale will strengthen our balance sheet, reduce debt, and provide additional capital. This will enable us to focus our investment in next-generation technology infrastructure. We continue to make progress on the alignment of our asset portfolio and our disposal of non-core properties in support of our data-led growth.”
The group’s recently released interim results for the six months ended September 2024 shows a mobile service revenue growth of 10.0%, while fibre data revenue increased 15.5%, with mobile subscriber base exceeding 22.7 million.
The transaction is expected to close once all remaining administrative conditions are fulfilled, says Telkom
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