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Telkom SA to offload Masts and Towers arm for ZAR 6.75 billion

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In Short:

Telkom South Africa plans to sell its masts and towers business in Swiftnet for ZAR 6.75 billion to unlock value and strengthen its balance sheet. The sale agreement with Towerco Bidco, led by Actis and RBH, is subject to shareholder approval. Proceeds will be used to reduce debt and invest in core businesses – Openserve and Telkom Consumer. Telkom aims to enhance financial position and focus on growth opportunities.

Telkom South Africa to Sell Masts and Towers Business for ZAR 6.75 Billion

Telkom South Africa has announced plans to sell its masts and towers business housed in Swiftnet for an enterprise value of ZAR 6.75 billion. Telkom mentioned that this decision is a part of its strategic move to unlock value and strengthen its balance sheet by divesting non-core assets. The sale agreement has been signed with Towerco Bidco Proprietary, a consortium led by Actis and including the African community investment holding company Royal Bafokeng Holdings (RBH), and is subject to Telkom shareholder approval. Towerco Bidco will fund the purchase consideration through a combination of equity and third-party debt.

Telkom’s Swiftnet

Swiftnet, Telkom’s subsidiary, reportedly operates one of the largest portfolios of masts and towers in South Africa, with approximately 3,900 commercially viable structures.

Telkom intends to utilize the proceeds from the sale primarily to reduce its debt and invest in its core businesses, particularly Openserve (wholesale infrastructure connectivity provider with the largest open-access network across South Africa) and Telkom Consumer (fixed broadband provider and, together with its mobile network, a converged communications provider).


The transaction, categorized as a Category 1 transaction under JSE Listings Requirements, requires shareholder approval through an ordinary resolution. With this move, Telkom aims to enhance its financial position and focus on growth opportunities in its core business areas.

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