Ellies to enter business rescue amid collapse of Bundu Power bid

Shares in Ellies crashed 60% on Wednesday after the more than four-decade-old electronics group said it intended to enter business rescue amid the collapse of a crucial acquisition.

The company, founded in 1979, imports and distributes LED lighting, as well as electronic and solar solutions. It said on Wednesday that its bankers had declined to fund the about R200 million acquisition of backup power specialist Bundu Power.

It said it now believes it is in the best interests of its shareholders for it to enter business rescue, further warning of a delay in the publication of its results for the six months to end October. In terms of JSE requirements, the results are required to be published within three months of the end of the financial period.