South Africa’s Telkom announced today its board has resolved to postpone a separate listing of Swiftnet on the JSE.
Telkom announced its plans to flot Swifnet last September. Masts and towers business.
“Given the recent global events, current market conditions and the impact on the Capital Markets, the board has resolved to postpone the separate listing of Swiftnet on the JSE,” Telkom informed investors on Wednesday.
“The Board remains committed to its value unlock strategy which is premised on Telkom’s market capitalisation not representing its intrinsic value.
“Against this backdrop, the board continues to consider all strategic options that support its value unlock strategy, which include affirming the valuation of Swiftnet and its contribution to the valuation of Telkom.”
Telkom said that the board is determined to maximize shareholder value. They will provide more information when necessary about the best route to accomplish this under current market conditions.
Swiiftnet has 6 225 masts and towers, it is South Africa’s largest independently run tower portfolio.
Swiftnet’s management has seen a diversification in its tenancy, with 56% of its tenants hailing from the sector.
Gyro is Telkom’s wholly-owned subsidiary that manages its masts and towers, property development, and property management services. It could be listed on the JSE, or attracted investors.
Telkom also has one of SA’s biggest property portfolios that started being acquired under the apartheid state machinery.