Telkom is engaged in “exclusive negotiations” with a preferred bidder regarding the sale of Swiftnet.
While Telkom’s mobile business has made good strides in recent years, its IT business, BCX, has been struggling.
Telkom is just weeks away from announcing the sale of its masts and towers business.
Telkom has decided to hit pause on dividend pay-outs for longer than expected as it battles tough market conditions.
But the former telecommunications monopoly faces huge challenges if it hopes to remain a significant market player.
The telecommunications operator has reported a poor set of interim results for the six months to end-September 2022.
Telkom is considering all “viable” options for its towers and masts business, Swiftnet, including the sale of a majority stake in the company.
Telkom has reported a decline in full-year revenue of 1.1%, to R42.8-billion. It has blamed tough competition and the weak state of the economy.
In a blow to shareholders who had been hoping for an imminent “value unlock”, Telkom has elected to postpone the separate listing of Swiftnet.
New Telkom CEO Serame Taukobong has a challenge on his hands: the mobile growth story that underpinned the business in recent years appears to be ending.