Communications regulator Icasa has cleared the sale of Telkom’s masts and towers business, Swiftnet, to a private equity consortium led by Actis.
The approval of the transfer of Swiftnet’s telecommunications licences by Icasa was the last hurdle in the way of the deal being consummated.
“This marks the final major regulatory requirement for the R6.75-billion transaction to a consortium led by Actis, alongside Royal Bafokeng Holdings. Icasa’s approval, which results in a change of control of Swiftnet’s licences, comes after unanimous shareholder approval secured in May 2024, and Competition Tribunal approval obtained in September 2024,” Telkom said in a statement to shareholders on Tuesday.
“The sale of Swiftnet’s portfolio of approximately 4 000 towers and masts marks a significant step in the implementation of Telkom’s transformative strategic journey to focus on core operations while realising the value in non-core assets,” the company said.
Telkom CEO Serame Taukobong said in the statement that the proceeds from the sale will strengthen the company’s balance sheet by reducing debt and providing additional capital. “This will enable us to focus our investment in next-generation technology infrastructure,” he said.
“We are creating a focused and agile Telkom that can invest in growth areas while maintaining our position as South Africa’s leading telecoms infrastructure provider.”
Read: Telkom urges Icasa to scrap call termination fees completely
The Swiftnet transaction is expected to close once all remaining administrative conditions are fulfilled. – © 2024 NewsCentral Media
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