TechFocus24 reported last month that Telkom had reached an agreement with the consortium — made up of Actis (70% shareholding) and Royal Bafokeng Holdings (30%) — to sell its Swiftnet business, which houses the towers portfolio, in a deal that gives Swiftnet an enterprise value of $352,299 million.
Telkom said it has now distributed a circular related to the disposal of the assets to its shareholders, which includes a notice convening a general meeting on 24 May at which shareholders will be asked to decide on the proposed sale.
The meeting will take place at subsidiary BCX’s offices in Centurion, near Pretoria, at 10am on that day. Only shareholders who are in the shareholder register on 17 May will be eligible to speak in and vote at the meeting.
If successfully concluded, Telkom will join rivals MTN South Africa and Cell C in selling tower infrastructure so as to focus on core business operations, leaving only Vodacom among the major mobile operators still owning its towers.
“This decision marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations,” Telkom Group CEO Serame Taukobong said in a statement last month announcing the proposed transaction. Swiftnet owns about 4 000 high sites around South Africa.
“This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings… This move underscores Telkom’s commitment to fortifying its financial position, reducing debt and enhancing liquidity,” Taokobong said.
“Beyond the financial implications, this transaction ensures seamless continuity for our related businesses, particularly Telkom Consumer and Openserve, by guaranteeing continued access to Swiftnet’s infrastructure under mutually beneficial terms,” he added.
The Actis-led consortium will fund the purchase of Swiftnet from both equity and third-party debt. Apart from shareholders, the acquisition must still get the nod from regulators.
Source: Techfocus24