Telkom informed shareholders this morning that it has identified a preferred bidder for the disposal of the company’s masts and towers business housed in Swiftnet.
In July of this year, Telkom CEO Serame Taukobong announced that they are in the process of selling their Swiftnet towers and expect to close the deal within the next two months.
Taukobong said they are speeding up their value-unlock journey at favourable pricing to shareholders.
“The Telkom board remains confident that the company can unlock value, and we will continue on that path,” he said. “For us, it is execution with speed and passion.”
As part of its value unlock strategy, Telkom planned to list its towers and masts business Swiftnet on the JSE by the end of 2022.
However, this initial public offering was delayed until further notice because of unfavourable market conditions related to Russia’s invasion of Ukraine.
The plan has changed. Taukobong said the Telkom board has allowed him to pivot on their Swiftnet listing plans.
“We have been given support to sell the Swiftnet towers outright. We are in the process of achieving that,” Taukobong said.
“Hopefully, in the next month or two, we will be able to announce a successful sale to the market.”
However, the company announced today that it is now in exclusive negotiations with a preferred bidder in respect of the potential disposal of Swiftnet.
Telkom said that, if successfully concluded, this transaction may have a material effect on the price of the company’s securities.
Telkom did not identify the preferred bidder but said it is a consortium of equity investors – including a Black Economic Empowerment partner – led and managed by a reputable private equity firm.
“These negotiations may or may not lead to a transaction, and therefore shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made,” Telkom warned.