31 March 2025
Telkom has successfully finalized the sale of its mast and tower infrastructure subsidiary, Swiftnet, for R6.75 billion. The buyer is a consortium led by British investment firm Actis LLP.
Telkom announced that all conditions precedent related to the sale agreement have been met, and the parties are now proceeding to finalize the transaction as per the agreement.
Telkom initially signalled its intention to sell Swiftnet back in July 2023. In March 2024, Bloomberg reported that Actis LLP was the prospective buyer for the infrastructure asset. The transaction underwent several key stages, requiring approval from Telkom's shareholders, the South African Competition Commission, and the Competition Tribunal, along with the Independent Communications Authority of South Africa (ICASA), which provided approval in December 2024.
The sale forms part of Telkom's broader restructuring strategy aimed at refocusing its operations on core telecommunications services and improving financial stability. By divesting Swiftnet, Telkom aims to reduce its debt burden, enhance its cash position, and consolidate its market presence, with a strategic eye toward reinvestment in digital infrastructure and emerging technologies.
While the sale bolsters Telkom’s cash reserves, it also results in a decrease in control over a significant revenue-generating asset. Swiftnet has been a crucial part of Telkom's operations, offering recurring revenue from rental agreements with various telecom operators. The subsidiary manages approximately 4,000 telecommunications towers, which are essential for mobile operators looking to lease space for their equipment.
To mitigate the impact of losing this asset, Telkom has outlined plans to accelerate its investments in fibre optics, 5G technology, and various digital services. These initiatives are designed to enhance Telkom’s competitive stance against major players in the market, including MTN, Vodacom, and Cell C.
