Telkom is considering all “viable” options for its towers and masts business, Swiftnet, including the sale of a majority stake in the company.
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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.
Vodacom Group will spin off its South African tower portfolio into a separate business and may seek partners for the newly created entity.
Telkom burned through close to R1-billion cash in the most recent six months.
As Telkom makes plans to list its masts and towers business, Swiftnet, next year, the unit is actively preparing for the mass deployment of 5G in South Africa.
Telkom’s sprawling wholesale division, Openserve, is likely to be the next unit of the telecommunications group to be listed on the JSE.
In an effort to unlock shareholder value trapped in its corporate structure, Telkom has announced it will seek a JSE listing for its masts and towers business.