South Africa’s Telkom enters deal to sell mast and towers unit for $357 mn

Telkom, South Africa’s third-biggest telecom company, said on Friday it had entered into an agreement to sell its masts and towers business, Swiftnet, for 6.75 billion rand ($357 million).

The purchaser is Towerco Bidco Proprietary Limited, a consortium of equity investors led and managed by Actis, which holds 70% of the purchasers’ shares, while Royal Bafokeng Holdings holds the remaining 30% stake, Telkom said.

“This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations,” Group CEO Serame Taukobong said in a statement.

“This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings.”

Telkom had first announced that it was in talks to sell the subsidiary to a consortium of equity investors last year.

The transaction remains subject to shareholder and regulatory approvals.