Telkom, South Africa’s third-largest telecom company, is currently in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. A consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid.
In order to unlock the undervalued business, Telkom has spun off its telecom towers and masts into a separate unit. This move was made as part of the company’s reorganization process to transition itself into an infrastructure company that drives strategic growth through consolidating core assets. The reorganization process is expected to be fully operational by the end of 2025.
Once the infrastructure company structure is in place and the masts and towers transition is concluded, Telkom will consider further opportunities to realize value, including minority partnerships for Openserve and a strategic equity partner for BCX – its fibre and ICT businesses. This move reflects Telkom’s efforts to reposition itself and drive strategic growth by exploring potential sales and partnerships to unlock the value of its business divisions. Overall, the company is working towards a stronger and more efficient business model in the future.