TLDR
- Telkom sells its masts and towers business Swiftnet to Towerco Bidco, led by Actis and Royal Bafokeng Holdings, for R6.75 billion.
- Competition Tribunal of South Africa approves the sale, emphasizing public interest concerns addressed by the buyer.
- Swiftnet, a significant wireless solutions provider in South Africa, operates nearly 4,000 masts and leases spectrum to various clients.
Telkom's sale of its masts and towers business Swiftnet to Towerco Bidco, a company owned by Actis and Royal Bafokeng Holdings, has been approved by the Competition Tribunal of South Africa.
The sale, valued at over $350 million, follows the Competition Commission's recommendation that the deal would not harm competition but highlighted the need to address certain public interest concerns, which have been accepted by the buyer.
Swiftnet, which owns nearly 4,000 masts and leases spectrum to various customers, is a key player in providing wireless in-building solutions across South Africa. The sale marks Telkom's shift to focus on its core business, joining rivals MTN South Africa and Cell C in selling off tower infrastructure, leaving Vodacom as the only major mobile operator that still owns its towers.
Key Takeaways
The telecoms infrastructure sector is experiencing a surge in mergers and acquisitions, reflecting heightened activity and interest from investment firms. Mobile operators are also divesting assets, presenting lucrative opportunities for investment firms eager to capitalize on this trend. Actis, boasting a portfolio spanning investments across 17 countries, has emerged as a key player in financing infrastructure projects throughout Africa. Notable ventures include the Accra Mall, Ikeja City Mall, Rack Centre, and the Azura Energy Project. This deal positions Actis to tap into a rapidly expanding sector buoyed by robust secular trends. The increasing demand for tower densification, fueled by rising internet penetration and the transition from 3G and 4G to 5G networks, underscores the sector's growth potential. Actis' involvement underscores its commitment to investing in infrastructure projects poised for substantial growth and impact across the African continent.
