eriez electronics The company, the main operating subsidiary of Eriez Holdings, has received a takeover offer from an anonymous third party whose CEO believes he can save the company.
This latest twist in the long-running Eriez saga comes on Wednesday when Eriez Holdings Inc. filed for liquidation under the Companies Act after failing to secure support from bankers for an acquisition that forms a key part of its restructuring plan. It happened after the announcement. .
The company entered voluntary business rescue in January after a planned acquisition of Bundu Power, which it had hoped would put it on a stronger financial footing, fell through.
The deal required debt financing from Erie's bankers and shareholder approval. Bankers informed Erie's that they were not prepared to finance the acquisition.
“The business rescue officer has concluded that there is no reasonable prospect that the company will be rescued and therefore…will apply to the court for an order discontinuing the business rescue proceedings and winding up the company,” Eriez Holdings said. said in a statement. It issued a short statement on the JSE's Stock Exchange News Service (Sens) late on Wednesday.
However, in the latest development, Eriez Electronics, which “includes all cash-generating business units within the Eriez Group”, said it intended to continue trading.
“We would like to clarify that the recent Sens announcement relates to Eriez Holdings. Eriez Holdings is the JSE-listed holding company for the operating companies of the Eriez Group. The company's only assets are the shares in its operating subsidiaries. '' said John Evans, who handles business rescues for both Eriez Holdings and Eriez Electronics. “Eriez Electronics continues to trade and expects to announce a proposed business rescue plan by May 10, 2024.”
third party
Eriez Electronics CEO Sean Prithviraj said in a statement: The Satellite Facilities and Solar Power segment will continue to install systems for customers.
“Business Rescue officials have received offers from third parties wishing to acquire business units and expect the sale of these viable businesses to be completed in the coming weeks.” This not only ensures the continuity of the business relationship but also provides an opportunity for a significant number of employees to transfer to the potential acquirer,” Prithviraj said, without naming the third party. Stated.
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Ellies Electronics was founded in 1979 by the late Elliott (“Ellie”) Salchow, who passed away in 2021. © 2024 News Central Media