Telkom Shareholders to Vote on Tower Sale

Telkom shareholders will soon decide on the proposed sale of the company’s towers and masts to a consortium led by private equity firm Actis. This move follows a similar strategy adopted by rivals MTN and Cell C, potentially leaving Vodacom as the only major South African mobile operator holding onto its tower infrastructure.

Key Details of the Deal:

  • Consortium: Led by Actis (70%) with Royal Bafokeng Holdings (30%) acquiring Telkom’s Swiftnet business, which houses the towers.
  • Value: The deal values Swiftnet at R6.75 billion.
  • Shareholder Vote: Shareholders will vote on the sale at a general meeting on May 24th, 2024.

Telkom’s Rationale:

Telkom CEO Serame Taukobong highlights the sale as a strategic move to:

  • Unlock shareholder value: By monetizing the tower assets.
  • Streamline operations: Focus resources on core Telkom businesses like Telkom Consumer and Openserve.
  • Improve financial health: Reduce debt and enhance liquidity.

Benefits for Telkom:

  • Continued access: Guaranteed access to Swiftnet infrastructure under mutually beneficial terms for Telkom’s core businesses.
  • Financial benefits: Proceeds from the sale will be used to reduce debt and improve Telkom’s financial position.

Looking Ahead:

  • Regulatory approval is still required for the sale to proceed.
  • If approved, Telkom will join MTN and Cell C in divesting tower infrastructure.

This potential sale signifies a shift in South Africa’s mobile network landscape, with Telkom following the trend of industry peers.

About Telecoms-Channel

Telecoms-Channel.co.za is your one-stop source for the latest news and insights from the telecoms industry in South Africa, where you get comprehensive coverage of the industry and keep up with the ever-evolving market landscape.

Whether you need to understand market trends, identify new opportunities, or stay informed of the latest developments, we have you covered.

In addition to bringing the best news together, we have access to an extensive supplier network that makes it easy for any telecoms company looking to tap into new markets or enter the telecoms industry. Take advantage of our expertise and contact us today to find your next partner!

Other posts you might be interested in

Ericsson LG
Industry News

Ericsson-LG’s Key Trends Shaping the Future of Enterprise Communication

Ericsson-LG is at the forefront of transforming the business communications landscape. By harnessing the power of artificial intelligence, cloud technology, and robust cybersecurity, the company is empowering businesses to enhance productivity, streamline operations, and improve customer experiences.

Cloud PBX Solutions

Request Once, Get Multiple Quotes - Save Thousands!