TELKOM SA SOC LIMITED - General repurchase of securities

General repurchase of securities

Telkom SOC Limited
Registration Number: 1991/005476/30
JSE share Code: TKG
ISIN Code: ZAE 000044897
(“Telkom” or “the company”)


REPURCHASE OF SHARES ON THE OPEN MARKET


1.   INTRODUCTION

     In terms of paragraph 5.79 and 11.27 of the Listings Requirements of the JSE Limited (“JSE”),
     shareholders are advised that Telkom has purchased 15 808 461 (which is 3% of the company’s
     issued share capital at the beginning of the share repurchase program of 526 948 700 of its own
     ordinary shares in terms of the general authority granted by shareholders at the company’s annual
     general meeting held on 24 August 2017 (“the General Repurchase”).

     The General Repurchase was effected through the order book operated by the JSE trading system
     without any prior understanding or arrangement between Telkom and the counter parties. No shares
     were repurchased during any prohibited period.

     The General Repurchase was funded from available cash resources.

2.   DETAILS OF THE REPURCHASE

       Dates of repurchase of securities:              Between 15 November 2017 and
                                                       16 February 2018
       Highest price paid per share:                   R 51.00
       Lowest price paid per share:                    R 44.29
       Average effective price paid per share gross    R 47.873
       of dividend benefit on cum div shares
       purchased
       Average effective price paid per share net of   R 47.508
       dividend benefit on cum div shares
       purchased
       Number of shares repurchased:                   15 808 461
       Value of shares repurchased cum dividend:       R 756 797 364
       Value of shares repurchased net of benefit of   R 751 041 077
       cum div shares repurchased:
       The number and percentage of Shares which       36 886 409 being 7%
       may still be repurchased by the Company in
       terms of the its general authority
       Total shares in issue after the share           511 140 239
       repurchase (Note 1):
     Note 1: The 511 140 239 shares reflected above assume that all 15 808 461 shares have been
     delisted by the JSE. The company will make application to the JSE for the repurchased shares to
     be delisted on or about 20 February 2018.

     There has been no change to the company’s treasury shares (currently 630 314 shares) as a result
     of the General Repurchase.

3.   STATEMENT BY THE DIRECTORS

     The directors of Telkom confirm that, after considering the effect of the General Repurchase, for a
     period of 12 months after the date of this announcement:

       -   Telkom and its subsidiaries (“the group”) will be able in the ordinary course of business to pay
           its debts;
       -   the assets of Telkom will be in excess of the liabilities of Telkom group;
       -   the share capital and reserves of Telkom will be adequate for ordinary business purposes;
           and
       -   the working capital of the Telkom Group will be adequate for ordinary business purposes.

4.   SOURCE OF FUNDS

     The General Repurchase was funded from the company’s available cash resources.

5.   IMPACT OF THE GENERAL REPURCHASE ON THE FINANCIAL INFORMATION OF THE
     COMPANY

     The impact of the General Repurchase on the financial statements of the group is as follows:

     The net effect has been a cash outflow of R 751.04 million excluding cost. 4 878 209 shares were
     purchased cum div of 118 cents per share. The corresponding reduction in shareholder’s equity
     will result in the interest earned on the cash resources being forgone in the future.


Centurion
19 February 2018


Sponsor:
The Standard Bank of South Africa Limited

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