investors on Wednesday that it is in negotiations about potential acquisitions in the solar and renewable energy sectors.
The company, which just days ago warned that it could soon be forced to cut jobs to ensure its continued financial viability, said it is “in negotiations with third parties with a view to pursuing certain potential acquisitions in the solar, uninterrupted power supply and renewable energy sectors”. “These negotiations, if successful, may have an impact on the price of the company’s securities. Non-binding term sheets have been signed regarding potential targets and the due diligence processes with regards to one of the targets has commenced,” it said.
In July, Ellies blamed the shift by South Africans away from traditional satellite television services to streaming alternatives for plunging the business into a full-year loss. Revenue for the year to end-April 2022 fell by 10.8% to R1.08-billion, while headline earnings per share swung from a profit of 9.19c to a loss of 7.13c. It reported a loss after tax of R43.7-million, from a profit before of R45-million.
Ellies shares were trading hands at 16c each shortly after noon on Wednesday, up 1c, or 6.7%, on the session. —