The Competition Commission has recommended that the sale of Telkom’s masts and tower business Swiftnet to private equity firm Actis and Royal Bafokeng Holdings be approved.
Actis and Royal Bafokeng formed a new entity, TowerCo, to acquire the stake. Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng nation, will hold no less than 30% of TowerCo.The acquisition is based on an enterprise value of R6.75 billion, though this will be subject to adjustments, including those related to debt, capital expenditure and working capital movements.
To deal with public interest concerns, parties have made"procurement commitments to firms that are either small/medium enterprises or that are owned by historically disadvantaged persons for a period of five years from the merger implementation date," the commission said on Thursday.Swiftnet’s core business includes leasing space on its mast and tower related infrastructure to customers, including mobile network operators.