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 (Pty) Ltd, Netelek (Pty) Ltd and Netelek Technology Ltd ("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. 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.