Ellies Holdings, a South African consumer electronics group, plans to raise R120 million from investors through a rights offer to complete two acquisitions aimed at transforming its business.
- The company plans to acquire Magetz Electrical and Power on Wheels, also known as Bundu Power, for an initial payment of R72.6 million, with the balance of R130 million due over three earn-out periods.
- The board of directors of Ellies has resolved to undertake a fully underwritten renounceable rights offer in the amount of R120 million through the issue of new Ellies shares at an issue price of 7c/share.
- Mazi Assets Management and Imvula Education Empowerment Trust have agreed to underwrite the proposed rights offer on an equal basis.
- Shareholders must still approve an increase in Ellies authorised share capital, among other pre-conditions, prior to the implementation of the rights offer.