Telkom, South Africa’s third-largest telecom company, is in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. A consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid.
As part of its reorganization process, Telkom has spun off its telecom towers and masts into a separate unit to explore options to unlock the undervalued business because it was trapped within the group structure. The move reflects Telkom’s efforts to reposition itself and drive strategic growth through consolidating core assets.
The transition into an infrastructure company structure is expected to be fully operational by the end of 2025. Once this process is complete and the masts and towers transition is concluded, Telkom will consider further opportunities to realize value, including minority partnerships for Openserve and a strategic equity partner for BCX – its fibre and ICT businesses.
Overall, this move demonstrates Telkom’s commitment to unlocking the value of its business divisions through potential sales and partnerships. The company is working towards a stronger and more efficient business model in the future.