Telkom South Africa’s planned US$355 million selloff of its Swiftnet tower business to infrastructure-focused private equity firm Actis cleared another hurdle on Friday after its shareholders unanimously voted in favor of the deal.
According to a statement issued to the Johannesburg Stock Exchange (JSE) on Friday, Telkom announced that the “Ordinary Resolution required to implement the Disposal was approved by the requisite majority of votes.” The statement also said that no one voted against the resolution.
Telkom cautioned that the sale of Swiftnet to Actis remains subject to regulatory approvals and other conditions.
In March, Telkom confirmed its deal to sell Swiftnet to Actis in a move to pay down debts, balance its books and free up cash to invest in its core businesses and other growth opportunities. Actis had also confirmed the deal in a separate statement.
However, at the time, the deal had not yet received the blessing of Telkom’s shareholders. Telkom distributed a circular in April saying that a resolution to approve the sale would be on the table at a general meeting on 24 May.
Swiftnet owns around 4,000 high sites around South Africa.
MTN South Africa and Cell C have also sold off their tower infrastructure to focus on core business operations. Vodacom is the only major mobile operator in South Africa that still owns its towers and has announced no plan to divest them.
