SLO - Southern Electricity Company Limited - Cancellation of acquisition

SLO - Southern Electricity Company Limited - Cancellation of acquisition        
transactions and changes to the board                                           
Southern Electricity Company Limited                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 1997/006894/06)                                            
JSE code: SLO                                                                   
ISIN: ZAE000041919                                                              
("SELCO" or "the company)                                                       
CANCELLATION OF ACQUISITION TRANSACTIONS AND CHANGES TO THE BOARD               
1.   Cancellation of acquisition transactions                                   
SELCo shareholders are referred to the announcement published by the company    
on SENS on 18 June 2010 and in the press, wherein shareholders were advised     
that the company had entered into three separate inter-conditional agreements   
dated 17 June 2010 ("the agreements") to acquire the entire issued share        
capital in Rural Maintenance (Proprietary) Limited, Netelek (Proprietary)       
Limited and Netelek Technology Limited ("the transactions"). The agreements     
were subject to the fulfilment, by 31 August 2010, of various conditions        
precedent including the approval of SELCo shareholders which required SELCo     
to send a circular to its shareholders and to convene a general meeting to      
obtain shareholder approval. SELCo had proceeded with the transactions on the   
basis of advice given to it on the IFRS accounting treatment of the             
transactions. However, the JSE Limited has referred the matter to the GAAP      
Monitoring Panel which has questioned this accounting treatment. If the         
transactions were to be accounted for on the alternative basis being debated,   
SELCo`s board does not believe that the shareholders would view it as being     
in their best interest. Accordingly, it will not seek to extend the date for    
the fulfilment of the conditions precedent.                                     
2.   Changes to the board                                                       
Shareholders are advised in terms of 3.59 of the JSE Listings Requirements      
that CF Bosch (currently the chief executive officer), I Bosch (currently the   
financial director) and S Nyovane have resigned as directors of the company.    
The rationale for the restructuring of the board is to separate the business    
of SELCo from that of the other entities to whose business the aforesaid ex-    
directors are core. PM Bester who is currently an executive director of the     
company will assume the role of chief executive director until the company`s    
next annual general meeting. Helga Doring has been appointed to the board as    
the financial director. A BCom graduate of the University of Pretoria, she      
has been involved with SELCo since 2006. She is well versed in the Group`s      
policies and procedures and her strong grasp of accounting principles and her   
commitment to curbing expenditure and eliminating waste have helped             
streamline operations over the past few years. The board looks forward to her   
contribution in its constant drive to put processes and procedures in place     
that ensure the smooth running of day-to-day business with maximum efficiency   
at minimum cost.                                                                
Pretoria                                                                        
2 September 2010                                                                
Sponsor:                                                                        
Grindrod Bank Limited                                                           
Reporting accountants and auditors:                                             
Mazars                                                                          
Date: 02/09/2010 14:09:10 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.