Telkom has entered into an agreement to sell its masts and towers business housed in its wholly-owned subsidiary, Swiftnet, to Towerco Bidco, a new entity to be set up by a black economic empowerment (BEE) consortium.

The sale has an enterprise value of R6,75-billion, and the proceeds will be utilised to primarily pay down Telkom debt, strengthening its balance sheet and enabling it to release free cash flow for investment in Telkom’s core businesses and deployment in pursuit of growth opportunities.

The consortium includes an infrastructure fund managed by a subsidiary of Actisl and a vehicle owned by Royal Bafokeng Holdings (RBH) as its BEE partner.