(Ecofin Agency) – Following the unanimous approval of shareholders, the Commission and the South African Competition Tribunal, the sale of Swiftnet by Telkom has been validated by another national body.
Telkom, the South African telecoms operator, this week obtained approval from the Independent Communications Authority (ICASA) to sell Swiftnet, its subsidiary specializing in telecommunications infrastructure. The transaction, worth 6.75 billion rand (approximately 369 million USD), will be carried out with a consortium led by British investor Actis LLP.
ICASA’s decision comes after approval in September from the Competition Tribunal. It also follows the green light from the Competition Commission (CompCom), which came after the group’s shareholders unanimously validated the transaction. “This transaction is a key moment in the implementation of our data-driven strategy under OneTelkom” said Serame Taukobong, CEO of Telkom Group.
This sale is part of Telkom’s strategy to refocus its activities on mobile and fiber, while strengthening its finances and investing in cutting-edge technologies. “The sale will strengthen our balance sheet, reduce our debt and provide additional capital. This will allow us to focus our investment in next-generation technology infrastructure” added Serame Taukobong.
It should be noted that Telkom recorded an increase of 10% in mobile revenues and 15.5% for fiber data, according to its interim financial results for the six months ended September 2024.
Adonis Conrad Quenus
Edited by: Feriol Bewa
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04/09/2024 – South Africa: the Competition Tribunal approves the sale of Swiftnet
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