South Africa’s Telkom announced today its board has resolved to postpone a separate listing of Swiftnet on the JSE.
Telkom announced last September its plans to float Swifnet, a masts and towers business.
“Given the recent global events, current market conditions and the impact on the Capital Markets, the board has resolved to postpone the separate listing of Swiftnet on the JSE,” Telkom informed investors on Wednesday.
“The Board remains committed to its value unlock strategy which is premised on Telkom’s market capitalisation not representing its intrinsic value.
“Against this backdrop, the board continues to consider all strategic options that support its value unlock strategy, which include affirming the valuation of Swiftnet and its contribution to the valuation of Telkom.”
Telkom added that the board is focused on driving maximum shareholder value and will provide further information at the appropriate time on the best route to deliver this in the current market conditions.
Swiiftnet has 6 225 masts and towers, it is South Africa’s largest independently run tower portfolio.
Under the management of Gyro, Swiftnet has diversified its tenancy with 56% of its tenants coming from the industry.
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.