Acquisition of majority shareholding in Afrihost

On 30 May 2014, MTN South Africa, a wholly-owned subsidiary of MTN Group, signed an agreement with Brendan Armstrong, Angus MacRobert, Peter Meintjes, Greg Payne, Frank Payne and Gian Visser and their family trusts and investment company, in terms of which MTN South Africa will subject to the fulfilment of certain conditions precedent to acquiring a shareholding of 50% plus one share in Afrihost.

Afrihost is a leading South African hosting and Internet service provider with an established subscriber base in the consumer and small and medium enterprise markets. Afrihost and its subsidiary, Axxess DSL ("Axxess"), which has a strong and dynamic management team, have well recognised and reputable brands in the ICT industry. Afrihost has won the MyBroadBand ISP of the Year award for the past three years, and prior to that Axxess won the award twice.

The Afrihost acquisition will add scale to MTN South Africa's online ICT service offering, which is focused on the consumer and SME market. MTN South Africa expects to leverage off Afrihost's strong customer service, value proposition and agility, thereby boosting MTN South Africa's presence in the SME, corporate/consumer and connected home segments. MTN South Africa will, in addition, be able to supply Afrihost with products for its existing customer base and vice versa.

The transaction is aligned to the group's strategy of optimising its operating model.

The agreement is subject to various regulatory approvals.

Any enquiries related to this transaction must be forwarded to:

Nik Kershaw, Group Executive for Investor Relations at [email protected] and Silvanus Mabaso at [email protected].