Information from Eskom

Reference is made to the presentation delivered by Eskom Holdings SOC Ltd (Eskom) to all financial creditors on 15 December 2021 (the “Investor Presentation”), a copy of which is available on Eskom’s website: https://www.eskom.co.za/investors/investor-presentations

As stated in the Investor Presentation, Eskom has engaged Lazard as its financial adviser and ENSafrica and White & Case LLP as its legal advisers in connection with Eskom’s turnaround plan.

Following the Investor Presentation, Eskom wishes to provide the following updates on the unbundling of its Transmission division:

On 17 December 2021, the legally binding merger agreement, pursuant to which Eskom will transfer its Transmission division to its wholly owned subsidiary, National Transmission Company South Africa SOC Limited (“NTCSA”), was executed.

The merger agreement gives effect to the transfer of the Transmission division to NTCSA subject to the satisfaction of certain suspensive conditions, which include, but are not limited to, Eskom obtaining all applicable creditor consents.

Accordingly, Eskom and its advisers are currently in the process of scheduling meetings with those financial creditors from whom consent will be required for the purpose of the transfer of the Transmission division to NTCSA.

Eskom will also schedule a conference call in the coming weeks with all of its financial creditors to provide a further update on the unbundling of its Transmission division and the other implementation steps as contemplated by the Department of Public Enterprises’ ‘Roadmap for Eskom in a Reformed Electricity Supply Industry’.

Eskom also wishes to remind stakeholders that, as stated in the Investor Presentation, all of Eskom’s existing debt facilities (including its bonds) will remain on its balance sheet following the transfer of the Transmission division to NTCSA.

Eskom very much appreciates the ongoing support and cooperation of all of its creditors and stakeholders and will continue to communicate any material updates to the market.

Contact Eskom Media Desk, Phone 011 800 3433 / 5944 / 6050, mediadesk@eskom.co.za, www.eskom.co.za