(Ecofin Agency) - In March, Telkom announced a deal to sell Swiftnet to a consortium led by British investor Actis. The transaction has now received approval from South Africa’s Competition Tribunal.

Telkom, South Africa's telecom company, has moved forward with selling its telecom tower subsidiary, Swiftnet, to a consortium led by British investor Actis. The deal, valued at 6.75 billion rand ($377.9 million), was approved with conditions by South Africa’s Competition Tribunal on September 4.

This approval comes about a month after the Competition Commission (CompCom) gave the green light for the transaction, which was first announced in March. Telkom’s shareholders also unanimously approved the sale in May, but the deal still requires approval from the Independent Communications Authority of South Africa (ICASA).

Telkom revealed plans to sell Swiftnet in July 2023 as part of its “value unlocking strategy.” The company initially planned to list its telecom tower business separately in 2021, but global financial instability delayed the move. Telkom is also looking to sell minority stakes in its fiber optic subsidiary, Openserve, and its IT division, BCX.

CEO Serame Taukobong stated that the proceeds from the Swiftnet sale would be used to strengthen Telkom’s balance sheet. As of March 31, 2024, the group’s net debt stood at 16.9 billion rand. For the 2024 financial year (April 2023 - March 2024), Telkom's revenue reached 43.2 billion rand, up 1.6% year-on-year.

Through this sale, Telkom aims to free up cash to invest in its core businesses and pursue new growth opportunities. The company plans to focus on its mobile network and fiber optic services, while also expanding its IT capabilities through data centers.