Notes to the Group Annual Financial Statements | Note 2.4

Of the carrying value of inventory as of 31 May 2024, R523 million (2023: R1 billion) is restricted as it is held by the funders under the airtime sale and repurchase agreements which form part of TPC’s borrowings in connection with the Cell C recapitalisation, as detailed above. As a result of TPC’s repurchase obligation, the airtime inventory that was sold to the funders has continued to be recognised as TPC’s inventory, and the repurchase obligation has been recognised as borrowings. As airtime inventory is repurchased it becomes unrestricted and is available to be sold. During the next 12 months, TPC is required to repurchase R523 million of the restricted airtime. TPC has the right to sell this airtime inventory without restriction before 28 September 2024. However, there are certain restrictions regarding TPC’s ability to dispose of any of this airtime that is still on hand at that date (which carrying value of airtime management believes will be negligible), these restrictions fall away from 28 March 2026 or earlier should certain trigger events occur.