Telkom says it has made significant progress with its plan to list its masts and towers business, Swiftnet, on Johannesburg Stock Exchange (JSE).
It said that the progress includes, but is not limited to, formal engagements with the JSE.
“Telkom believes that a separate listing of Swiftnet will affirm the valuation of the masts and towers business and its contribution to the overall valuation of the Telkom business, thereby unlocking further value for Telkom,” the company stated.
Telkom first announced its plans to list Swiftnet in September.
Swiftnet is a Telkom subsidiary under management by Gyro.
With 6,225 masts and towers, Telkom said it is South Africa’s largest independently run tower portfolio.
Outgoing Telkom Group CEO, Sipho Maseko, said the approach to separate Telkom’s businesses had enabled clear visibility of the growth potential of each unit.
Under the management of Gyro, Swiftnet has diversified its tenancy, with 56% of its tenants coming from the industry.
According to Maseko, the current Telkom valuation is not a true reflection of its intrinsic value and that the value of the Swiftnet business is currently not being recognised.
Telkom said it hopes to list Swiftnet before the end of its financial year in March 2022.
Main Image: Digi Afri