Telkom SA revealed it entered into an exclusive deal to sell its tower unit Swiftnet to an unknown party, a move that aligns with its strategy to focus on core infrastructure.
In its preliminary results statement, Telkom said as of now Swiftnet is classified as “held for sale”. Reuters reported the operator said the preferred bidder is a consortium of equity investors including a Black Economic Empowerment partner, and managed by a reputable private equity firm.
Telkom, a state majority-owned operator, had been seeking to sell its units and reorganise into a digital infrastructure company, stating this aligns with current sector trends.
"Our strategy and performance continue to deliver industry-leading connectivity rates, enabling more South Africans access to affordable, high-speed internet," said Telkom Group CEO, Serame Taukobong.
"We are encouraged by the progress made in the Swiftnet transaction which, when concluded, will enable us to strengthen our balance sheet and continue to execute our strategic goals.
“Our performance shows we are focused on the right areas. Telkom continues to connect South Africans to a better life through our robust networks and advanced technologies.”
The operator group announced interim H1 results ending September 30, in which revenue was up 2.5% to ZAR21.8 billion (US$1.7 billion), and EBITDA increased 1.7% to ZAR5 billion. Headline earnings per share improved 46.7% to 195.0 cents.