Ellies going into business rescue

 ·31 Jan 2024

Electronics manufacturer and distributor Ellies has announced that it is going into voluntary business rescue.

In February 2023, the group detailed its plan to acquire Magetz Electrical Proprietary Limited and Power on Wheels Proprietary Limited (collectively, Bundu Power).

The move was subject to debt funding from the group’s bankers and approval of Ellies shareholders in a general meeting by today, 31 January 2024.

“Our bankers have advised that they will not fund the proposed transaction and thus the company advises that the conditions precedent will not be met and therefore the agreement in this regard will lapse and be of no further force or effect,” the group said in a SENS update.

Moreover, the group is yet to publish its interim results in the six months ended 31 October 2023, which are required to be released within three months of the period end. The group is still finalising these results, which will result in further delays.

“In light of the above disclosures, the board of directors of Ellies has resolved that it would be in the best interest of Ellies to commence with voluntary business rescue proceedings in terms of section 129 of the Companies Act, No. 71 of 2008,” the group said.

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