SA's Telkom Sells Swiftnet Masts and Towers Business for $355.4 Million

SA's Telkom Sells Swiftnet Masts and Towers Business for $355.4 Million

By Staff Writer, 25 March 2024

Telkom, a major player in South Africa's telecommunications sector, has announced the sale of its Swiftnet masts and towers business for a whopping R6.75 billion ($355.4 million).

This strategic move sees the business transferred to a consortium comprising Actis, a UK-based investment firm, and Royal Bafokeng Holdings.

According to Telkom, shedding Swiftnet aligns with its objectives of strengthening its financial standing, reducing debt, and bolstering liquidity.

Actis takes the lead with a 70% stake in the new entity, Towerco Bidco, while Royal Bafokeng Holdings holds the remaining 30%.

Swiftnet, a key player in South Africa's telecommunications infrastructure landscape, offers co-location services to major mobile network operators across approximately 4,000 sites in the country.

This acquisition by Actis and Royal Bafokeng Holdings signifies their confidence in the growth potential of the telecom sector.

This transaction mirrors a broader trend within the South African telecom industry.

With Telkom's move, Vodacom emerges as the sole remaining major player with ownership of tower infrastructure, following similar decisions by MTN South Africa and Cell C.

In June 2022, MTN South Africa finalized a sale and lease-back deal with IHS Holding Ltd., involving 5,700 tower sites across the nation.

Concurrently, American Tower Corporation, through its local South African subsidiary, acquired roughly 960 of Cell C's existing towers, as Cell C streamlined its focus on core business operations.

Source: Abdullah Ajibade / TechPoint Africa

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