Telkom is looking at ways to generate more value from its mobile-tower business, including a potential sale or\u00a0spin-off.<\/p>\n
South Africa\u2019s former landline monopoly is \u201cactively exploring\u201d tower deals, chief executive officer Sipho Maseko said by phone after the company reported full-year earnings on Monday. \u201cThat will be a focus over the next 12 months.\u201d<\/p>\n
The attempt to cash in on a portfolio of about 6,500 towers shows Pretoria-based Telkom is moving to strengthen the balance sheet and preserve cash to weather a deep recession brought about by the coronavirus pandemic.<\/p>\n
The company suspended dividend payments for three years and scrapped all medium-term targets, while about 2,300 employees have accepted voluntary redundancy packages.<\/p>\n
Demand for towers in South Africa may be on the rise as the country starts to build out 5G capabilities, Maseko said.<\/p>\n
Wireless carriers around the continent have been raising money from the sale of such assets, with specialist companies like Helios Towers Ltd. looking to\u00a0expand.<\/p>\n
Telkom shares declined 3.4% to 26.58 rand as of 10:09 a.m. in Johannesburg, extending a 12-month slump to 73%. The company is almost 40% owned by the South African government<\/p>\n