South African telecommunications company Telkom SA SOC Ltd. intends to consolidate its telecommunications towers and real estate assets into a separate subsidiary, Bloomberg News reported, citing "two people familiar with the matter."

According to the report, the new unit, which would be managed by a property-focused team, may then be taken public. Bloomberg noted that Telkom CEO Sipho Maseko wants the company's real estate portfolio to contribute more to the company's earnings.

The South African government holds a 39% stake in the business.