The Competition Commission has recommended that the sale of Telkom’s masts and tower business Swiftnet to private equity firm Actis and Royal Bafokeng Holdings be approved.
"The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market," it said in a statement on Thursday.
Actis and Royal Bafokeng formed a new entity, TowerCo, to acquire the stake. Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng nation, will hold no less than 30% of TowerCo.
The Competition Tribunal will now have the final say on the deal.
The acquisition is based on an enterprise value of R6.75 billion, though this will be subject to adjustments, including those related to debt, capital expenditure and working capital movements.
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