- Following a recommendation by the Competition Commission, the Competition Tribunal has approved Telkom's sale of Swiftnet, the company’s masts and towers business, to Towerco Bidco, a new entity owned by Actis and Royal Bafokeng.
- The company reportedly stated in a report to shareholders that the Competition Tribunal of South Africa approved the disposal, subject to certain conditions which have been accepted by the purchaser.
- According to the Competition Commission, the deal was unlikely to substantially lessen or prevent competition in any market; however, it advised that "public interest concerns" be addressed.
Swiftnet leases spectrum on its mast and tower infrastructure to customers and provides wireless in-building solutions. It boasts owning close to 4,000 masts across the nation.
In March 2024, Telkom reached an agreement with the consortium led by Actis to sell Swiftnet at an enterprise value of R6.75 billion (over $350 million), in a debt and equity deal. Towerco Bidco is 70% owned by Actis, a global private equity firm, and 30% by Royal Bafokeng Holdings. However, the sale agreement was pending approval from shareholders and regulators.
After a call for a shareholders’ vote in April, Telkom shareholders, including the government of South Africa, which owns 40.5% of Telkom, voted in favour of the deal in May.
In August, the Competition Commission gave its go-ahead for the deal, but it also required approval from the Competition Tribunal, which, after a month, has now granted its approval.
At the time, it was noted that if the deal goes through, Telkom will join MTN South Africa and Cell C in selling tower infrastructure, leaving Vodacom as the only major mobile operator still owning its towers.
Telkom Group CEO Serame Taukobong noted that the move would help them unlock shareholder value and focus on core business operations.
For the quarter ending 30 June 2024, Telkom reported 3.9% revenue growth to R10.9 billion ($587.2 million), driven by rising demand for next-generation network (NGN) offerings and a 14.6% increase in mobile subscribers, surpassing 21 million.
Moreover, the Swiftnet deal underscores its commitment to strengthen its financial position, reduce debt and enhance liquidity.
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