Telkom delays Swiftnet listing, citing fallout from Russia’s invasion of Ukraine
Swiftnet was meant to be listed on the JSE by the end 2022
SA’s third-largest mobile operator, Telkom, has postponed the listing of its mast and towers business, citing the fallout from Russia’s invasion of Ukraine, which has cast a shadow on global financial markets.
Swiftnet was meant to be listed on the JSE by the end 2022, but the initial public offering (IPO) has now been delayed until further notice. The decision will also come as a blow to the JSE, which has been starved of new listings in recent years.
“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 on the JSE,” Telkom said in a statement on Wednesday.
The company has long argued that the value of its various business units are not reflected in the group share price and the potential listing of Swiftnet was one avenue to unlock the value of its business.
Swiftnet revenue grew 4.6% to R317m in third quarter to end-December.
The listing postponement came two days after Prosus wrote down its $769m stake in Russian social networking platform VK Group, illustrating how the war has affected the investment markets. Prosus is the international e-commerce arm of Naspers.