Telkom, one of South Africa’s largest telecommunications companies, is currently in exclusive talks with a preferred bidder for the potential sale of its mast and tower business, Swiftnet. This move comes as the company seeks to reposition itself and drive strategic growth by exploring potential sales and partnerships to unlock the value of its business divisions.
The consortium of equity investors, with partner Black Economic Empowerment, is leading the offering for Swiftnet. This transaction represents a significant step towards Telkom’s goal of becoming an infrastructure company that will drive strategic growth through the consolidation of core assets. The reorganization process is expected to be fully operational by the end of 2025.
As part of this restructuring, Telkom has spun off its telecoms poles and towers into a separate unit in order to explore options to unlock the undervalued business that has been trapped within the group structure. Once the infrastructure company structure is in place and the mast and tower transition is complete, Telkom will consider further value opportunities such as minority partnerships for Openserve and a strategic equity partner for BCKS – its fiber and ICT businesses.
Overall, this move represents a shift in Telkom’s focus towards creating a stronger and more efficient business model in order to drive strategic growth in the future.