Telkom sells Swiftnet for R6.75bn

Telkom, one of South Africa's leading telecommunication companies, recently made headlines with the sale of Swiftnet for a whopping R6.75 billion. In a recent interview with CNBC Africa, Serame Taukobong, the Group CEO of Telkom, discussed the details of the sale and the strategic plans for the future of the company. Taukobong acknowledged that the sales process had been lengthy but emphasized that it was a thorough and prudent decision. He highlighted the importance of managing the company's debt ratio and outlined key areas where the proceeds from the sale would be allocated. One of the primary objectives is to balance Telkom's debt and maintain a healthy debt to EBITDA ratio. Additionally, the company intends to focus on further investment in its mobile and fiber businesses, both of which have shown promising performance. The sale of Swiftnet has positioned Telkom to strengthen its infracore business, which plays a crucial role in driving digital connectivity in South Africa. Taukobong underscored the significance of fiber and mobile connectivity in Telkom's strategic vision. With 170,000 kilometers of fiber infrastructure in place, Telkom is well-positioned to enhance its connectivity offerings and support the digitization of the country. Taukobong also discussed the potential for future partnerships to bolster Telkom's infracore business and unlock its full potential. While acknowledging the importance of collaborations, he reiterated the company's commitment to leveraging the sale proceeds to fortify its core operations and drive growth. In response to queries about potential dividends for shareholders, Taukobong emphasized that the focus remains on reinvesting in the business to secure long-term returns for investors. By prioritizing strategic investments and reinforcing the company's infracore capabilities, Telkom aims to position itself as a key player in South Africa's digital transformation. As Telkom charts a new path following the sale of Swiftnet, the company is poised to build on its core strengths and capitalize on emerging opportunities in the telecom sector. With a clear focus on enhancing connectivity and driving innovation, Telkom is gearing up for a transformative phase in its journey towards sustainable growth and continued success.