Telkom SA has done a deal to sell its masts and towers business Swiftnet to a consortium that includes global infrastructure private equity investor Actis and Royal Bafokeng Holdings for R6.75 billion.
“Swiftnet is a strategic acquisition for Actis that will see it acquire over 4 000 sites across the country. The platform is underpinned by a strong relationship with Telkom and other anchor tenants, and long-term contractual revenue,” Actis directors said in a statement Friday.
Actis’ directors said the investment builds on their aim to create a leading independent tower company, and Swiftnet would become part of its digital infrastructure portfolio in South Africa - Actis invested in fibre network operator Octotel in 2020.
Royal Bafokeng Holdings is the BEE partner in the deal.
Telkom said the disposal was in line with its value-unlock strategy, which had included the sale of non-core assets.
It said purchase price put an enterprise value of R6.75bn on Swiftnet. The proceeds would be used to pay down debt, strengthen Telkom's balance sheet and enable it to release cash for investment in its core businesses and deployment in pursuit of growth opportunities.
Tekom’s board had previously said that its market capitalisation did not represent its intrinsic value, and that all strategic options to unlock value would be explored.
“Telkom has ambitious growth plans across its business units, particularly for Openserve , South Africa's leading wholesale infrastructure connectivity provider with the largest open-access network across South Africa,” the company said Friday.
There were also ambitious growth plans for Telkom Consumer - South Africa's largest fixed broadband provider measured by network deployed, an internet service provider and, together with its mobile network, a converged communications provider, the company said.
Actis had over the last two decades deployed $1.4bn in investments in South Africa. Royal Bafokeng Holdings is a long-term investor that acquires significant stakes in high growth, defensive sectors and high-quality companies with established track-records.
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