• Telkom has wrapped up the disposal of its Swiftnet business to Towerco Bidco.
• This as the suspensive conditions that were in place have been fulfilled completing the sale.
• Swiftnet’s network was comprised of around 4 000 towers and masts which have been sold for R6.75 billion.

A sale that has been in the making since last year has finally reached the end stages.

In March 2024, Telkom announced that Swiftnet, the division that owns its towers and masts, was the subject of an offer to buy from Towerco Bidco for R6.75 billion. That purchase has finally progressed through the checks and balances to complete it.

“Telkom is pleased to advise that the Suspensive Conditions to proceed to closing of the
Disposal have been fulfilled other than standard Suspensive Conditions which run until the
business day before closing,” the telco told its shareholders on Monday morning.

In December ICASA gave its approval of the sale of Swiftnet marking the last major regulatory hurdle for Towerco Bidco. Towerco Bidco is a consortium comprised of Actis and an infrastructure vehicle owned by Royal Bafokeng Holdings. The Competition Tribunal gave the deal its blessing in September.

Swiftnet’s portfolio is comprised of around 4 000 towers and masts. Given Telkom’s position as a telecommunications firm, the disposal of these assets seems odd but Telkom needs the money to right the ship and disposing of a division that holds 4 000 towers and masts for a substantial fee puts it in a strong position to do so.

“This transaction is a pivotal moment in Telkom’s implementation of our data-led strategy under OneTelkom,” Serame Taukobong, Telkom Group chief executive officer said in December. “The sale will strengthen our balance sheet, reduce debt, and provide additional capital. This will enable us to focus our investment in next-generation technology infrastructure.”

The CEO aims to transform Telkom into an agile and focused organisation while maintaining its market position.