Global Courant
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Ellies currently plans to transform into a smart infrastructure company focusing on alternative energy supply, backup water systems and smart home technologies through the acquisition of Bundu Power.
Founded by Ellie Salkow in 1979, Ellies started with just five employees and sold only television antennas. The company then created Elsat with the arrival of satellite TV in the South African market in 1995.
The two companies became house brands in the 2000s and then expanded the product range to include audio, telephone accessories and household electrical products. The company subsequently listed on the JSE’s Alternative Exchange (AltX) in 2007, paid its first dividend in 2010, and moved to the JSE’s board of directors in 2010. It became a firm favorite among investors and achieved an all-time record price of over R9.50 per share in May 2013.
Digital TV delays and other challenges took their toll on Ellies, but in 2019 it traded at 10c per share, a level that continues to this day. Their share price has dropped 99% over the past decade, making it one of the worst performing companies on the JSE.
Ellies is currently a wholesaler, importer and distributor of LED lighting, electrical and electronic products and solar energy solutions for the residential and commercial sector. Recently, they announced that they intend to purchase Bundu Power for a maximum consideration of R202.6 million to strengthen its presence in the alternative energy market.
The energy company Bundu Power, founded in 2005, specializes in the distribution and rental of generators and the distribution and installation of solar energy and related products.
Ellies CFO Guy Moretti said the acquisition of Bundu Power is part of the company’s strategy to reposition itself as a smart infrastructure company. The original plan is to diversify away from its satellite business to focus on alternative energy products, backup water systems and smart home technology.
The acquisition of Bundu will boost Ellies’ revenues and the company would have a very strong balance sheet.
Ellies wants to make a transformation with the acquisition of Bundu Power
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