South Africa’s Telkom is planning to float its masts and towers business on the Johannesburg Strock Exchange. Swiftnet is a Telkom subsidiary under management by Gyro.
Swiiftnet has 6 225 masts and towers, it is South Africa’s largest independently run tower portfolio.
Telkom Group CEO, Sipho Maseko, says the approach to separate Telkom’s businesses has enabled clear visibility of the growth potential of each business.
Under the management of Gyro, Swiftnet has diversified its tenancy with 56% of its tenants coming from the industry.
According to Maseko the current Telkom valuation is not a true reflection of its intrinsic value.
The value of the Swiftnet business is currently not being recognised.
“A separate listing of Swiftnet will affirm the valuation of the masts and towers business and its contribution to the overall valuation of the Telkom business thereby unlocking further value for Telkom,” Maseko concludes.
The Telkom Board expects to make a final determination regarding a separate listing before the end of the financial year.
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Gyro is Telkom’s wholly-owned subsidiary that manages its masts and towers, property development, and property management services. It has the potential to be floated on the JSE or to attract investors.
Telkom also has one of SA’s biggest property portfolios that started being acquired under the apartheid state machinery.
It is believed Telkom may announce a strategic investor in Gyro in the next few weeks.
