Telkom Completes R6.75 Billion Sale of Masts and Towers to Actis LLP
Deal News | Jan 14, 2025 | FTI Consulting
FTI Consulting, through its financial advisory arm FTI Capital Advisors, successfully facilitated the sale of Telkom's masts and towers business in South Africa. The business, contained in Telkom’s subsidiary Swiftnet SOC Limited, was sold to an infrastructure fund managed by a subsidiary of Actis LLP, alongside Royal Bafokeng Holdings. The transaction, valued at R6.75 billion, aligns with Telkom's strategy to focus on core infrastructure assets, improving its financial positioning for future growth. Regulatory approvals were obtained, marking a significant milestone in South Africa's digital infrastructure sector. This sale is a testament to Telkom's ability to unlock shareholder value and reinforces its leadership in the evolving sector. FTI Consulting is a globally recognized business advisory firm, with expertise in M&A, financial advisory, and industry-specific solutions.
Sectors
- Telecommunications
- Investment Banking
- Infrastructure
Geography
- South Africa – Telkom, the primary company involved, is a leading ICT provider in South Africa, and the transaction took place here.
- Dubai, United Arab Emirates – FTI Capital Advisors (DIFC) Limited, which facilitated the deal, is located in Dubai.
Industry
- Telecommunications – The primary industry involved with Telkom's business and strategic realignment through the divestiture of its masts and towers.
- Investment Banking – FTI Capital Advisors, a division of FTI Consulting, played a key role in advising and facilitating the transaction.
- Infrastructure – The deal involves the strategic sale of telecommunication infrastructure assets.
Financials
- R6.75 billion – The sale price of Telkom's masts and towers business.
- $3.69 billion – FTI Consulting's reported revenue during the fiscal year 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Telkom SA SOC Limited | Target Company | Company | A leading ICT company in South Africa selling its masts and towers business. |
| Swiftnet SOC Limited | Subsidiary of the Target Company | Company | A wholly owned subsidiary of Telkom where the masts and towers business resides. |
| Actis LLP | Buyer | Company | The acquiring infrastructure fund managed by Actis LLP. |
| Royal Bafokeng Holdings Proprietary Limited | BEE Partner | Company | Acts as the Black Economic Empowerment partner in this transaction. |
| FTI Consulting, Inc. | Financial Advisor | Company | A global business advisory firm facilitating the transaction through its arm FTI Capital Advisors. |
| FTI Capital Advisors (DIFC) Limited | Financial Advisor | Company | The division of FTI Consulting operating from Dubai that specifically advised on the deal. |