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Telkom moots separate JSE listing of subsidiary

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 21 Sept 2021
Telkom Group CEO Sipho Maseko.
Telkom Group CEO Sipho Maseko.

Telephony group Telkom is seeking a separate listing of its Swiftnet masts and towers business on the Johannesburg Stock Exchange, as it seeks to unlock value for shareholders.

The company today announced that Swiftnet’s value is not fairly reflected in the Telkom share price, hence the move to list it separately.

Swiftnet, which has operated as a separate tower company for over three years, under management by Telkom subsidiary Gyro, has 6 225 masts and towers, and is SA’s largest independently-run tower portfolio.

Over the period, Telkom says, Swiftnet has diversified its tenancy, with 56% of its tenants coming from the industry.

Notifying shareholders today, Telkom says unlocking value from the group’s portfolio of businesses is a key component of its financial framework, and it will afford management flexibility to rebase the balance sheet and reinvest in the group.

Telkom Group CEO Sipho Maseko says the approach to separate Telkom's businesses has enabled clear visibility of the growth potential of each.

According to Maseko, the current Telkom valuation is not a true reflection of its intrinsic value and the value of the Swiftnet business is currently not being recognised.

“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," says Maseko.

Telkom says it expects to make a final determination regarding a separate listing before the end of the financial year.