Telkom SA SOC Limited has obtained approval from the Independent Communications Authority of South Africa (ICASA) for the disposal of its masts and towers business housed in Swiftnet SOC Limited.
This marks the final major regulatory requirement for the R6.75 billion transaction to a consortium led by Actis LLP, alongside Royal Bafokeng Holdings. 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.
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. 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,” said Serame Taukobong, CEO, Telkom Group. “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,” he added.
The Group’s recently released interim results for the six months ended September 2024 further validate its strategic approach, showcasing impressive achievements across key areas. Mobile service revenue grew by 10.0%, while fibre data revenue saw a significant increase of 15.5%. Additionally, the Group maintained a sustained positive free cash flow of R768 million. With a mobile subscriber base surpassing 22.7 million and a market-leading fibre connectivity rate of 49.7%, the results reflect strong performance and continued leadership in the telecommunications sector.
“The strong performance of our core business, coupled with strategic initiatives like the Swiftnet transaction, demonstrates that our strategy is delivering the promised results to the market.
We are creating a focused and agile Telkom that can invest in growth areas while maintaining our position as South Africa’s leading telecommunications infrastructure provider,” added Serame Taukobong, CEO, Telkom Group.
The transaction is expected to close once all remaining administrative conditions are fulfilled.
