In a blow to shareholders who had been hoping for an imminent “value unlock”, Telkom has elected to postpone the separate listing of its masts and towers business, Swiftnet.
According to a previous timetable shared with investors, Telkom had planned to complete the unbundling and separate listing of Swiftnet on the JSE by the end of its 2022 financial year of 31 March 2022.
“Given the recent global events, current market conditions and the impact on the capital markets, the board has resolved to postpone the separate listing of Swiftnet,” the company said before markets opened in Johannesburg on Wednesday.
“The board remains committed to its value-unlock strategy, which is premised on Telkom’s market capitalisation not representing its intrinsic value. Against this backdrop, the board continues to consider all strategic options that support its value-unlock strategy, which include affirming the valuation of Swiftnet and its contribution to the valuation of Telkom,” Telkom said.
“The board is focused on driving maximum shareholder value and will provide further information at the appropriate time on the best route to deliver this in the current market conditions.” — © 2022 NewsCentral Media