Telkom has successfully concluded the sale of its masts and towers business, Swiftnet, receiving R6.575 billion in cash. This transaction significantly boosted the company’s earnings, with basic earnings per share expected to rise 300% to at least 1,542c for the year ending March 2025. Headline earnings per share (HEPS), which exclude one-off items, are projected to increase by 10% to a minimum of 413.6c.
The sale was finalized on March 17, following the fulfillment of all suspensive conditions. Swiftnet, which owns around 3,900 commercial masts and towers in South Africa, was acquired by a consortium comprising an infrastructure fund managed by a subsidiary of Actis and an infrastructure vehicle wholly owned by Royal Bafokeng Holdings.
The deal had been approved by shareholders, the Competition Commission, and the Independent Communications Authority of SA (Icasa) in December. Telkom shares rose 2.74% to R38.26 following the announcement. The company expects to release its full-year financial results on June 10.