JSE-listed electronics manufacturer and distributor Ellies is being liquidated after business rescue efforts failed to bear fruit.
The company yesterday announced on the JSE Stock Exchange News Services (SENS) that attempts to resuscitate the business had gone belly up.
“Shareholders are referred to the announcement released on SENS on 31 January 2024 wherein it was advised that Ellies had entered into voluntary business rescue proceedings in terms of section 129(1) of the Companies Act, 71 of 2008, and the subsequent announcement of 6 February 2024 advising of the appointment of a business rescue practitioner in this regard,” says the company in a statement.
“The business rescue practitioner has concluded that there is no reasonable prospect of the company being rescued, and therefore, in accordance with section 141(2)(a)(ii) of the Companies Act, application will be made to the court for an order discontinuing the business rescue proceedings and placing the company into liquidation,” it adds.
Ellies was established in 1979 by the late Elliot Salkow. The Ellies Group was listed on the JSE’s Alternative Exchange on 5 September 2007 and moved to the Main Board of the JSE in November 2010 as part of the “Electronics & Electrical” sector.
In 2021, Ellies concluded a BEE transaction with lmvula Education Empowerment Fund Trust achieving level 3 B-BBEE status.
In February last year, the electronics manufacturer and distributor announced plans to acquire Bundu Power.
The deal 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 at the time.
“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.”
Share