Exclusive Talks: Telkom South Africa Considering Sale of Its Tower Business

South Africa’s third-largest telecom company, Telkom, is currently in exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business, Swiftnet. A consortium of equity investors, with a Black Economic Empowerment partner, is leading the bid. The move comes as part of Telkom’s reorganization process, which aims to transition into an infrastructure company to drive strategic growth through consolidating core assets.

Telkom has spun off its telecom towers and masts into a separate unit in order to explore options to unlock the undervalued business because it was trapped within the group structure. Once the restructuring process is complete and the masts and towers transition is concluded, Telkom will consider further opportunities to realize value, including minority partnerships for Openserve and a strategic equity partner for BCX – its fibre and ICT businesses.

The move reflects Telkom’s efforts to reposition itself and drive strategic growth by exploring potential sales and partnerships to unlock the value of its business divisions. By transitioning into an infrastructure company structure, Telkom hopes to achieve a stronger and more efficient business model in the future. The reorganization process is expected to be fully operational by the end of 2025.