Ellies wants to make a transformation with Bundu Power acquisition

Ellies is currently planning on transforming to become a smart infrastructure business that focuses on alternative energy supply, backup water systems, and smart home technologies through its acquisition of Bundu Power.

Founded by Ellie Salkow in 1979, Ellies started with only five employees, selling only television aerials. The company then created Elsat with the advent of satellite TV in the South African market in 1995.

The two companies became household brands in the 2000s, and then went on to expand the product range to include audio, telephone accessories, and domestic electrical products. The company was then listed on the JSE’s Alternative Exchange (AltX) in 2007, and it issued its maiden dividend in 2010 and moved to the JSE’s main board in 2010. It became a firm favourite among investors and hit an all-time high share price of over R9.50 per share in May 2013.

The delays on in digital TV and other challenges took their toll on Ellies but by 2019 it was trading at 10c per share, a level which persists to this day. Their share price declined by 99% over the last decade, making it one of the worst performers on the JSE.

Ellies is a wholesaler, importer and distributor of LED lighting, electrical and electronic products and solar solutions for the residential and commercial sectors at the current moment. Recently, they made an announcement that they are planning to buy Bundu Power for a maximum consideration of R202.6 million to strengthen its presence in the alternative energy market.

Founded in 2005, the energy company Bundu Power specialises in the distribution and rental of generators and the distribution and installation of solar and ancillary products.

The CFO at Ellies, Guy Moretti, said that the acquisition of Bundu Power is part of the company’s strategy to reposition itself as a smart infrastructure business. The initial 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 is set to increase Ellies’ earnings, and the company is said to have a very strong balance sheet.