S.Africa's Telkom enters deal to sell mast and towers unit for $357 mln

Credit: REUTERS/Siphiwe Sibeko

JOHANNESBURG, March 22 (Reuters) - Telkom TKGJ.J, South Africa's third-biggest telecom company, said on Friday it had entered into an agreement to sell its masts and towers business, Swiftnet, for 6.75 billion rand ($357 million).

The purchaser is Towerco Bidco Proprietary Limited, a consortium of equity investors led and managed by Actis, which holds 70% of the purchasers' shares, while Royal Bafokeng Holdings holds the remaining 30% stake, Telkom said.

"This decision marks a pivotal moment in Telkom's journey towards unlocking shareholder value and streamlining our focus on core business operations," Group CEO Serame Taukobong said in a statement.

"This divestiture aligns perfectly with our strategy to concentrate on our infrastructure assets while realising the inherent value in non-core holdings."

Telkom had first announced that it was in talks to sell the subsidiary to a consortium of equity investors last year.

The transaction remains subject to shareholder and regulatory approvals.

($1 = 18.9060 rand)

(Reporting by Nellie Peyton; Editing by Sherry Jacob-Phillips)

((nellie.peyton@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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