Telkom, South Africa’s third-largest telecom company, is in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. The consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid.
The reorganization process at Telkom has been ongoing for several years as the company seeks to transition into an infrastructure company. This move reflects their efforts to drive strategic growth by consolidating core assets and exploring potential sales and partnerships to unlock the value of their business divisions.
As part of this reorganization, Telkom spun off its telecom towers and masts into a separate unit called Swiftnet in an attempt to explore options to unlock the undervalued business because it was trapped within the group structure. 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.
Telkom’s efforts are focused on creating a stronger and more efficient business model in the future. The reorganization process is expected to be fully operational by the end of 2025, at which point Telkom will continue to evaluate opportunities for growth and expansion in order to maximize shareholder value.