Telkom to sell tower business to global investment firm, Royal Bafokeng for nearly R7bn

SA's third largest mobile operator, Telkom, announced on Friday it has inked terms for the sale of its masts and tower business, Swiftnet, for R6.75 billion.

The sale of Swiftnet, which has about 3 900 commercially viable towers in SA, was long expected. Bloomberg had reported earlier this week that private equity firm Actis, along with a local partner, were gearing up the acquisition.

Telkom confirmed this on Friday, with the minority partner being Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng nation, and which will hold no less than 30%. The acquisition is based on an enterprise value of R6.75 billion, though this will be subject to adjustments, including related to debt, capital expenditure and working capital movements. It also requires approval from Telkom shareholders, with a circular to follow.