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SA’s third-biggest mobile operator, Telkom, has disposed of 17 non-core properties for a cash injection worth R617 million.
According to the property marketing and auction company In2assets, the properties included commercial buildings, administration blocks, development sites and land in the Cape Town CBD, Johannesburg, Pretoria, Durban, Port Elizabeth and Welkom.
After going live on 29 August, the bid attracted 127 registered bidders, hailing as the largest property auction by turnover, according to In2assets.
In 2023, the company sold 65 Telkom properties, including transmission stations and service hubs, totalling R584 million in turnover.
The mobile operator has been battling with a net debt pile of almost R17 billion as of its year to end March, while the operator is valued at about R13.5 billion on the JSE. It has, however, recently slowed the intensity of its capital expenditure and reported a 5% climb in normalised core profit for its 2024 year to over R10 billion.
READ | Confident about what its fibre and data can offer SA, Telkom slows capex, eyes return of dividends
Government currently owns around 40% of Telkom, while the Public Investment Corporation owns over 13%.
In2assets said the auction sale is “more than just a record-breaking event; it represents a strategic move for parastatal institutions like Telkom to turn non-core buildings and land into vital cash injections”.
“Such initiatives provide a significant boost to the financial health of these institutions, allowing them to reallocate resources and invest in their core operations.”
“We are thrilled by the success of the Telkom Disposal Auction,” said In2assets MD Hein Hattingh in the statement.
“The exceptional turnout and the record-breaking results underscore the confidence investors have in the South African property market. We are proud to have facilitated this landmark event, which also plays a crucial role in providing financial support to parastatal organisations.”
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“This is another astonishing item.”
“SA’s third-biggest mobile operator, Telkom, has disposed of 17 non-core properties for a cash injection worth R617 million.”
Source Link: https://www.news24.com/fin24/companies/telkom-picks-up-about-r620m-in-record-sa-property-auction-20240905
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