Telkom SA SOC has kicked off the sale of a stake in its fiber business, as it seeks to unlock value for shareholders and boost profit.<\/p>\n
The South African telecommunications group is working with Bank of America Corp. to gauge interest in the Openserve business from potential investors and strategic partners, a spokesperson said in an emailed response to Bloomberg queries.<\/p>\n
A representative for Bank of America declined to comment.<\/p>\n
Openserve operates around 170,000 kilometers (105,633 miles) of fiber and legacy landline copper cables. Telkom said in February that it had received a number of expressions of interest in the business, and that a formal sales process would be launched by the end of its 2023 fiscal year.<\/p>\n
The Johannesburg-listed company is also in the process of selling its towers unit, which has attracted\u00a0interest\u00a0from independent tower operators including IHS Towers Ltd., Bloomberg News reported previously.<\/p>\n
Telkom intends to update shareholders on its plans when it presents annual results in June, the spokesperson said.<\/p>\n
Shares in Telkom have fallen about 25% over the last 12 months, giving it a market value of 17.2 billion rand ($968 million). MTN Group Ltd., Africa\u2019s largest telco operator, made an approach to buy Telkom in its entirety last year before talks about a deal\u00a0stalled.<\/p>\n