Telecom

South African Competition Tribunal Approves Sale of Swiftnet

South African Competition Tribunal Approves Sale of Swiftnet
Thursday, 05 September 2024 14:04

In March, Telkom announced a deal to sell Swiftnet to a consortium led by British investor Actis. The transaction has now received approval from South Africa’s Competition Tribunal.

Telkom, South Africa's telecom company, has moved forward with selling its telecom tower subsidiary, Swiftnet, to a consortium led by British investor Actis. The deal, valued at 6.75 billion rand ($377.9 million), was approved with conditions by South Africa’s Competition Tribunal on September 4.

This approval comes about a month after the Competition Commission (CompCom) gave the green light for the transaction, which was first announced in March. Telkom’s shareholders also unanimously approved the sale in May, but the deal still requires approval from the Independent Communications Authority of South Africa (ICASA).

Telkom revealed plans to sell Swiftnet in July 2023 as part of its “value unlocking strategy.” The company initially planned to list its telecom tower business separately in 2021, but global financial instability delayed the move. Telkom is also looking to sell minority stakes in its fiber optic subsidiary, Openserve, and its IT division, BCX.

CEO Serame Taukobong stated that the proceeds from the Swiftnet sale would be used to strengthen Telkom’s balance sheet. As of March 31, 2024, the group’s net debt stood at 16.9 billion rand. For the 2024 financial year (April 2023 - March 2024), Telkom's revenue reached 43.2 billion rand, up 1.6% year-on-year.

Through this sale, Telkom aims to free up cash to invest in its core businesses and pursue new growth opportunities. The company plans to focus on its mobile network and fiber optic services, while also expanding its IT capabilities through data centers.

On the same topic
MTN has announced the launch of the MTN Cloud Accelerator, a 12-week hybrid program designed to help African startups scale faster by leveraging MTN’s...
Flutterwave gained a BCEAO license to operate in Senegal, expanding to 35 African countries. It targets growth in Africa’s booming $1.5T...
Nigeria plans to retrain ex-cybercriminals for careers in digital security and tech. A new academy will launch with 500 trainees, expanding later...
Reliable, high-capacity international connectivity is crucial for driving economic growth, enabling digital services, and promoting regional...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
03

• The U.S. imposed a 20% tariff on cashew exports from Vietnam and a 40% tax on suspected transshipm...

U.S. Tariffs on Vietnam Cashews May Disrupt Trade, Hit African Growers (Interview)
04

Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 mil...

Cauri Money Targets Cameroonian Diaspora with Digital Wallet Launch
05

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.