Telkom shareholders, including the government of South Africa, have voted in favour of selling the company’s masts and towers business to a consortium led by Actis.
The company announced in March that it had reached an agreement with Actis, a major private equity firm, and Royal Bafokeng Holdings, a community-owned investment holding company, to sell Swiftnet, its masts and towers business, in a debt and equity deal that gives Swiftnet an enterprise value of R6.75-billion.
Actis and Royal Bafokeng have formed a new entity, called Towerco Bidco, to acquire the stake. The former owns 70% of Towerco Bidco, with the latter holding the remaining 30%.
A general meeting of Telkom shareholders has now approved the transaction, although it remains subject to the fulfilment of several other conditions, including regulatory approval from communications regulator Icasa and the Competition Commission.
A hundred percent of votes cast – representing 82.7% of Telkom’s total issued share capital – were in favour of the sale. Not a single vote was cast in opposition to the transaction.
Telkom Group CEO Serame Taukobong said in March that the sale, once concluded, would mark a “pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations”.
Swiftnet owns about 4 000 high sites around South Africa.
Debt and equity
“This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings… This move underscores Telkom’s commitment to fortifying its financial position, reducing debt and enhancing liquidity,” Taukobong said.
The consortium has said it will fund the purchase of Swiftnet from both equity and third-party debt. – © 2024 NewsCentral Media