This is a leveraged acquisition finance deal in which a consortium of local and international investors led by Actis Africa Limited ("Actis"), acquired 100% of the issued share capital of Swiftnet SOC Limited ("Swiftnet") from Telkom SA SOC Limited. Actis is a leading private investment firm with an extensive investment portfolio in emerging markets and sustainable infrastructure. Swiftnet is a key player in South Africa's tower infrastructure market and it's tower portfolio has communication towers which span across 9 of South Africa's provinces.

Werksmans attorneys were appointed to advise the lenders, The Standard Bank of South Africa Limited, acting through its Corporate and Investment Banking division, and Investec Bank Limited, acting through its Investment Banking division: Sponsor Leveraged Finance (the "Lenders"), on the debt financing aspects of the acquisition. Actis were represented by Webber Wentzel. Following the acquisition, Swiftnet entered into a Sale of Business and Lease Agreement with Swiftnet Towerco, a subsidiary of Tower Bidco, with Swiftnet Towerco settling the purchase consideration thereunder using the proceeds of senior term and mezzanine funding from the Lenders. The funds were then distributed by Swiftnet to Tower Bidco to be utilised to discharge its obligations owing to the Lenders under the bridge funding.

This transaction is of significance as it will enable Swiftnet to expand its tower portfolio and meet the increasing demand for digital access across South Africa. South Africa has seen rapidly growing internet usage and data consumption, with a transition away from 3G and 4G toward 5G and 6G technologies. This transaction will position Swiftnet to expand its coverage to traditionally underserved rural areas, providing access to reliable and fast connectivity for businesses and communities across the country. This is significant in contributing towards the advancement and modernisation of digital telecommunications infrastructure in South Africa, promoting digital inclusion.

The Werksmans team appointed as advisors to the Lenders on the debt financing aspects of the transaction was led by partner Jenni Darling, and included senior associates James Wewege, Daniella van Wyk and associate Ndzalama Dumisa. The team was instrumental in the negotiation, drafting and settling of the suite of funding documentation, as well as the related security documentation consisting of inter alia registrable and unregistrable security within the context of a security SPV structure.