Telkom revealed today that it is approaching the culmination of negotiations for the Swiftnet sale to a preferred undisclosed bidder, marking a significant stride towards finalising the transaction.
Last November, Telkom revealed its plan to sell its masts and towers business, Swiftnet.
The giant telco said it has entered an exclusivity period with a preferred bidder, a consortium led by a reputable private equity firm with black economic empowerment backing.
Telkom today informed shareholders that substantial progress has been made on meeting the remaining agreed milestones under the exclusivity arrangement, including that the parties have significantly progressed their negotiations to agree transaction agreements, and the company expects to be able to make a more detailed announcement on or before it is required to update this cautionary announcement in accordance with the JSE Listings Requirements.
“Shareholders are advised that these exclusive negotiations may or may not lead to a transaction, and therefore, are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”
Also read: Is Rain The Ultimate Bidder For Telkom’s Masts And Towers Business, Swiftnet?
Telkom revealed its plan to sell its masts and towers business, Swiftnet. The giant telco said it has entered an exclusivity period with a preferred bidder, a consortium led by a reputable private equity firm with black economic empowerment backing.
Simultaneously, African Rainbow Capital (ARC) – empowerment investment company – announced plans to raise R750 million through a rights offer. The purpose of the rights offer is to raise additional capital for ARC Investment to invest in ARC Fund. This private equity fund focuses on market expansions for Rain and the growth of digital bank Tyme.
Rain is a data-only network provider.
JSE-listed ARC Investments is incorporated in Mauritius and is 51.1% owned by billionaire businessman Motsepe’s ARC, which is 100% owned by Ubuntu-Botho Investments.
Notably, ARC Investments has secured commitments from shareholders representing 60.5% of issued ordinary shares to subscribe for the rights offer.
All these goings-on’s suggest that ARC Investments is the unnamed “preferred bidder” in talks with Telkom to acquire its masts and towers business.
I am convinced that the rights offer is aimed at raising money to buy Swiftnet from the partial state-owned company.
