South African telecommunications service provider Telkom is set to vote on selling its towers and masts to a consortium led by private equity firm Actis. The proposed sale of Telkom's tower unit Swiftnet for 6.75 billion South African rands ($355 million) aims to alleviate debts. Telkom shareholders will convene on 24 May to decide on the sale, aligning with a trend among mobile operators to divest tower infrastructure for streamlined operations.
Swiftnet, with around four thousand high sites across South Africa, will see its purchase funded by the Actis-led consortium through a mix of equity and third-party debt. Pending regulatory approval, the deal signifies a strategic shift for Telkom, allowing the company to lease towers while focusing on core business operations.