ELLIES HOLDINGS LIMITED - Megatron Placed In Business Rescue

Megatron Placed In Business Rescue

ELLIES HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE share code: ELI ISIN: ZAE000103081
(“Ellies” or the “company”)


MEGATRON PLACED IN BUSINESS RESCUE


Megatron SA Proprietary Limited (“Megatron”) is a wholly owned subsidiary of Ellies, which houses the Megatron
infrastructure division, one of the two main divisions of Ellies, the other division being the Ellies consumer division.
Pursuant to a corporate restructure which came into effect in May 2015, the Megatron infrastructure division and the
Ellies consumer division are housed in separate stand-alone subsidiaries (namely Megatron and Ellies Electronics
Proprietary Limited). Each of the Megatron infrastructure division and the Ellies consumer division are operated and
funded on a stand-alone basis.

Shareholders are advised that the boards of directors of Megatron and Ellies have resolved that it will be in the best
interests of Megatron, Ellies and their stakeholders to commence with voluntary business rescue proceedings in terms
of section 129 of the Companies Act, 71 of 2008 (the “Companies Act”) in respect of Megatron. The board
resolution of Megatron to this effect has today been filed with the Companies and Intellectual Property Commission
(“CIPC”) and Megatron is currently awaiting confirmation from CIPC of the filing to proceed with the voluntary
business rescue.

Megatron has also resolved to appoint Barry David Kaganson of Matuson and Associates as business rescue
practitioner, and has lodged the documents for his appointment with CIPC.

Ellies and the Ellies Electronics division (the “guarantors”) have guaranteed the obligations of Megatron in respect of
a term loan facility (the “Megatron facility”) provided to Megatron by the Standard Bank of South Africa Limited
(“Standard Bank”).

Ellies and Standard Bank are engaged in an ongoing co-operative process aimed at an orderly settlement of any
remaining indebtedness arising from the Megatron facility by restructuring the debt in a manner that the guarantors are
confident can be accommodated from their ordinary cash flows and without interruption to the businesses as going
concerns.

Shareholders will be updated as further material information becomes available.

5 August 2016

Sponsor
Java Capital

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