Company news in brief

Telkom to sell tower businessSouth Africa's third largest mobile operator, Telkom, announced on Friday it has inked terms for the sale of its masts and tower business, Swiftnet, for R6.75 billion.The sale of Swiftnet, which has about 3 900 commercially viable towers in SA, was long expected. Bloomberg had reported earlier last week that private equity firm Actis, along with a local partner, were gearing up the acquisition.Telkom confirmed this on Friday, with the minority partner being Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng nation, and which will hold no less than 30%. The acquisition is based on an enterprise value of R6.75 billion, though this will be subject to adjustments, including related to debt, capital expenditure and working capital movements. It also requires approval from Telkom shareholders, with a circular to follow.Telkom had first mooted separately listing Swiftnet in 2021 but then ultimately shelved this plan, citing market conditions. It has been looking to sell it to help pay down net debt of over R18 billion as of the end of September. In morning trade on Friday Telkom had jumped almost 9%, valuing it at about R14.5 billion. The shares have still fallen by almost a fifth in the past year. – Fin24Reddit in market debutSocial media platform Reddit's shares ended their first day of trading in New York up 48%, signaling that investor appetite for initial public offerings of promising yet loss-making companies could be returning.Reddit, which has not turned an annual profit since launching in 2005, lured investors by positioning its content as training grounds for artificial intelligence (AI) programs. Reuters reported last month that Reddit struck a data licensing deal with Google worth about $60 million a year.While Reddit still relies on advertising for the vast majority of its revenue, it touted AI in its IPO marketing roadshow as an area of growth. Shares of the San Francisco-based company opened at US$47 on the New York Stock Exchange on Thursday after pricing at US$34 in the IPO, the top of the company's indicated price range. They ended trading at US$50.44.The IPO valued Reddit at US$6.4 billion, and the company and its selling shareholders raised US$748 million. Reddit was valued at US$10 billion in a private fundraising round in 2021, and the strong stock market reception indicated that the company may not have needed to curb its valuation expectations so much to get the IPO off the ground. – ReutersNike to become Germany supplierThe German Football Association (DFB) announced that American sportswear giant Nike would become their official supplier from 2027 onwards, ending a decades-long partnership with German firm Adidas.The DFB said on Thursday Nike would supply all national teams from 2027 to 2034, having made the best financial offer."The coming partnership allows the DFB for the next decade to work on central tasks with a view to developing football in Germany," DFB president Bernd Neuendorf said in a statement.Germany used Adidas products en route to all four World Cup titles from 1954 to 2014. In 2019, the company signed a four-year contract extension of their deal ending in 2022.Germany, whose football association is the world's biggest with more than seven million registered members, will host Euro 2024 from June 14 to July 14. – ReutersFedEx tightens profit forecastFedEx narrowed its fiscal 2024 profit forecast, raising the bottom end and lowering the top, as cost cuts take hold and share buybacks help offset less business from its largest customer, the US Postal Service.Its margin was helped by measures including parking aircraft, reducing flight hours and other efforts to fly fewer, fuller planes.Investors have been pressuring FedEx CEO Raj Subramaniam to improve profitability at air-based Express as it undergoes contract renewal talks with USPS and labor discussions with its pilots."The positive stock price reaction is nearly strictly a function of the Express margins easily beating expectations" as cost cuts take hold in a still-soft business environment, said Evercore ISI analyst Jonathan Chappell.Memphis-based FedEx now expects fiscal 2024 earnings in the range of US$17.25 to US$18.25 per share, compared with its prior forecast of US$17 to US$18.50 per share. - Reuters

Company news in brief

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Namibian Sun 2025-09-19

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Company news in brief

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Namibian Sun 2025-09-19

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