The Independent Communications Authority of South Africa (Icasa) has approved the sale of Telkom’s masts and towers business, Swiftnet, to a private equity consortium led by Actis.
This approval, which includes the transfer of Swiftnet’s telecommunications licenses, removes the final regulatory barrier for the $355 million transaction.
Telkom confirmed in a statement on Tuesday, December 17, 2024, that the Icasa approval follows unanimous shareholder consent granted in May 2024 and Competition Tribunal clearance in September 2024.
“This marks the final major regulatory requirement for the $355-million transaction to a consortium led by Actis, alongside Royal Bafokeng Holdings. Icasa’s approval results in a change of control for Swiftnet’s licenses,” Telkom stated.
Swiftnet, with its portfolio of approximately 4,000 towers and masts, is a key asset in Telkom’s broader plan to divest non-core assets and focus on its primary business operations. The sale allows Telkom to enhance its financial flexibility, reduce debt, and prioritise investments in next-generation telecommunications infrastructure.
Telkom CEO Serame Taukobong emphasised the transformative nature of the transaction. “The proceeds from the sale will strengthen Telkom’s balance sheet by reducing debt and providing additional capital. This will enable us to focus on investment in next-generation technology infrastructure,” he said.
Taukobong further noted that the decision aligns with Telkom’s goal of creating a more agile and focused company. “We aim to maintain our position as South Africa’s leading telecoms infrastructure provider while investing in growth areas,” he added.
With Icasa’s approval in place, the deal is expected to conclude once a few remaining administrative conditions are met. The consortium, led by Actis, a prominent investor in emerging markets, and Royal Bafokeng Holdings, a South African investment group, will take ownership of Swiftnet.
The acquisition positions Actis and its partners to expand their footprint in Africa’s telecommunications infrastructure sector, which is poised for significant growth as demand for mobile connectivity and data services rises.
The sale of Swiftnet reflects a global trend among telecom operators to divest non-core assets to optimise operations and unlock shareholder value. Such moves allow companies to focus on building state-of-the-art infrastructure while addressing the growing demand for advanced telecommunications services.
Telkom’s restructuring efforts align with broader industry changes, ensuring the company remains competitive and financially robust while advancing South Africa’s telecom capabilities. The $355 million deal not only reinforces Telkom’s strategic goals but also marks a significant milestone in reshaping the telecommunications infrastructure landscape in South Africa.
