Ellies Holdings said yesterday it would not require a rights issue and the terms of its acquisition of Bundu Power had been revised.
Ellies announced the plan to acquire Bundu on February 1, 2023, for R207.6 million, and it planned a R120m rights issue at the time.
The company and sellers of Bundu Power had now entered into an amended and restated share purchase agreement, Ellies said yesterday in a statement.
Bundu Power specialises in the distribution and rental of generators as well as solar and ancillary products, providing alternative energy solutions for residential, commercial, industrial, hospitality, agricultural and recreational users.
Ellies is repositioning itself as a smart infrastructure business.
The acquisition would be funded via five interim R1m payments to be made to the sellers in proportion to their shareholding in Bundu Power, on September 1, 2023, October 1, 2023, November 1, 2023, December 1, 2023 and January 3, 2024.
In addition, R150m would be paid on the date of fulfilment or waiver of the conditions precedent for the deal. The balance would be payable through two deferred payments of R26.3m each to be settled within 60 days of February 29, 2024, and February 28, 2025, respectively, the financial year ends of Bundu Power.
Ellies intended to fund the acquisition through a debt facility.