|Ellies to invest in digital and satelitte products|
Friday, 12 March 2010 02:00
Claiming to be the largest manufacturer, importer, wholesaler and distributor in Southern Africa of television reception-related products, as well as domestic electronic and audio products, it is raising R100 million of which R65 million will be used to pay for its purchase of power generation company Megatron Holdings.
Megatron was founded in 1999 and bought by Ellies in May 2008.
The balance of the amount raised will be used to fund Ellies` expansion programmes, including SA`s move to digital television, expansion into domestic appliances, growth of electrical ranges, and expansion into the satellite-related business.
Earlier this year, CEO Wayne Samson said the growth in demand for satellite and digital decoders will aid the company in growing over the next few years.
Ellies has also inked a deal with Altech UEC to distribute set-top boxes that will be required to view the new digital signal.
It will issue 50 million new shares at R2 a share. The new shares go live on 29 March.
The company`s share price closed yesterday at R1.85.
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