Telkom Secures ICASA Approval for R6.75 Billion Swiftnet Towers Sale to Actis-Led Consortium
Telkom’s ICASA-approved Swiftnet sale aligns with its strategy to reduce debt and focus on growth.
Telkom SA SOC Limited (“Telkom”) 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.
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.
– Serame Taukobong, CEO, Telkom Group
The Group’s recently released interim results for the six months ended September 2024 provided further validation for this strategy, showing:
- Mobile service revenue growth of 10.0%
- Fibre data revenue increase of 15.5%
- Sustained positive free cash flow of R768 million
- Mobile subscriber base exceeding 22.7 million
- Market-leading fibre connectivity rate of 49.7%
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.
– Serame Taukobong, CEO, Telkom Group
The transaction is expected to close once all remaining administrative conditions are fulfilled.
