Telkom still locked in talks to sell towers

Telkom has still not concluded a deal to sell its portfolio of masts and towers, on Monday renewing a “cautionary notice” to investors saying it remains in exclusive talks with a preferred bidder.

The JSE-listed telecommunications group announced last November that it had entered into exclusive negotiations with a preferred bidder for the Swiftnet-owned tower assets.

“The preferred bidder is a consortium of equity investors (including a black economic empowerment partner), led and managed by a reputable private equity firm,” Telkom said at the time.

“Shareholders are herewith further informed that continued progress has been made on meeting certain agreed milestones under the exclusivity arrangement, including that the bidder has completed its confirmatory due diligence,” Telkom said on Monday.

“Shareholders are advised that the exclusive negotiations may or may not lead to a transaction, and therefore are advised to exercise caution when dealing in the company’s securities until a further announcement is made.”

It has been reported previously that IHS Holding was weighing a bid for Telkom’s towers, though it’s not known if the company is involved in the talks.

Telkom said in November that the transaction, if successfully concluded, would still be subject to the approvals, including by the Competition Commission and its own shareholders.

Read: Telkom in talks with consortium to sell tower portfolio

The move to sell the tower assets comes after a similar move by Cell C, which sold its tower portfolio to American Tower Corp in 2011, and by MTN South Africa, which concluded a deal with IHS in 2022.  — © 2024 NewsCentral Media

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