JSE-listed telco Telkom announced on Monday it was currently engaged in discussions with two bifdders for its mast and towers business, Swiftnet.
Telkom said in a statement that it is committed to realising the intrinsic value of underlying businesses that make up the group.
During the previous calendar year, a multi-party sales process commenced following the Board’s approval to affirm and realise the value of Swiftnet through the disposal of the mast and towers business.
“Telkom received offers to acquire Swiftnet in its entirety during the last quarter of FY2023,” said the company.
“These offers were further refined from shortlisted bidders over recent weeks.
“Telkom is currently engaged in discussions with two bidders and will provide updates on the outcome of the process in due course.”
Following the legal separation of Openserve into a stand-alone entity effective 1 September 2022, Telkom said various initiatives were explored with the goal of realising value from this, deemed to be core, wholly owned Telkom subsidiary.
“Telkom conducted a market sounding exercise earlier this year to assess the depth of interest in a minority strategic equity stake in Openserve and received credible expressions of interest from a range of local and international parties.”
As indicated in its annual results announced on 13 June 2023, Telkom said it is positioning itself as an infrastructure business (InfraCo) at its core.
“Once this transition has been concluded, Telkom will consider its further options to realise value, including in relation to the expressions of interest received for Openserve.”
The company added that management is investigating the possible introduction of a strategic equity partner in BCX to enhance scale, growth and capabilities in various growth areas including cloud services and cybersecurity.
“A process is currently underway to assess the market for potential international and/or local partners and
to consider available options in this regard.”
