South Africa: Telkcom considers selling Swifnet tower division

South African telco Telkom, which spun off its telecom towers and mast into a separate division in 2021, is looking to sell the assets to unlock more value in the business. The operator is now in exclusive negotiations over selling its masts and towers business, Swiftnet. The company mentioned that the preferred bidder is a consortium of equity investors, including a Black Economic Empowerment partner, led and managed by a private equity firm.

Telkom said in a statement this week, “Shareholders are hereby advised that Telkom is currently in exclusive negotiations with a preferred bidder in respect of the potential disposal of Swiftnet. The preferred bidder is a consortium of equity investors, including a black economic empowerment partner, led and managed by a reputable private equity firm.”

Swiftnet is estimated to be worth 8.7 billion rand ($475 million) and owns a portfolio comprising 6,200 towers across South Africa. If the company is able to agree on a deal, it would require approval from regulators and shareholders.