Disappointing shareholders who had been looking forward to a “value unlock”, Telkom has elected to postpone the separate listing of its masts and towers business, Swiftnet.
The previous timetable Telkom shared with its investors revealed that the company had planned to complete the unbundling and separate listing of Swiftnet on the JSE by the end of its 2022 financial year of 31 March 2022.
Speaking about the company’s decision before markets opened in Johannesburg on 9th March, 2022, Telkom CEO Sipho Maseko said
Reason For The Swiftnet Setback Decision
“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”
“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 CEO Sipho Maseko went on to say “The board is focused on driving maximum shareholder value and will provide further information at the appropriate time on the best route to deliver this in the current market conditions.”
About Swiftnet
Swiftnet operates 6 225 masts and towers and is South Africa’s largest independently run tower portfolio. The company, which is the country’s third-largest telecommunications provider, said the listing of Swiftnet, which is managed by Gyro, will unlock value for the company.
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Swiftnet listing postponement came two days after Prosus wrote down its $769m stakes in the Russian social networking platform VK Group, illustrating how the war has affected the investment markets.