Telkom, South Africa’s largest fixed-line telephone group, is moving ahead with the creation of a new entity to complement its new business structure.
In April 2017, Telkom formed a wholly owned subsidiary, Gyro, to manage its masts and towers, property development and property management services.
However, the Telco didn’t disclose how will this company be built.
The wait is over, the company led by Sipho Maseko revealed in its latest annual report plans to beef up Gyro.
According to the report, Telkom and Gyro have entered into a sale of business for shares transaction in terms of which Telkom is selling its Masts and Towers (M&T) business to an existing subsidiary, Swiftnet, and 40 properties to a newly established wholly owned subsidiary, Gyro.
The M&T business will be sold as a going concern.
The company – which also owns BCX, Openserve and Trudon – said included in the M&T business are contracts, licences, M&T fixed assets and free right of use on Intellectual Property (IP), all of which is currently used by the M&T business.
“The 40 properties consist of technical, commercial and industrial properties owned by Telkom,” according to Telkom.
“The sale is part of the Telkom’s endeavour to unlock value in its property and M&T portfolios and the sale will be effective from the date of transfer of the properties.”
Techfinancials believe that Telkom should list Gyro on the Johannesburg Stock Exchange as a real estate business to create value for its shareholders.
Telkom has one of South Africa’s biggest real-estate portfolio that started being acquired under the brutal, apartheid state machinery
South Africa’s Telkom should just start a process to become a real estate landlord and float its property portfolio on the Johannesburg Stock Exchange.
Gyro is responsible for managing Telkom’s properties and tower needs, optimising the portfolio’s, and providing a turnkey property and tower management solution.