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Famatla Industries acquired a 6.5% stake in the group in line with its pre-listing strategy.
A first step towards achieving significant BEE shareholding at group level, the deal sees Famatla locked into Ellies for at least five years after listing with the added commitment to acquire more shares to reach a 10% threshold.
Ellies is the largest manufacturer, importer, wholesaler and distributor in Southern Africa of TV-reception and associated products.
Famatla, headed by Ellies non-executive director Mahlubi Mazwi and Jack Phalane - a partner at leading law firm Fluxmans Inc - acquired 15m shares.
As the shares form part of the vendor pool pre-listing, the deal does not necessitate a new issue of shares by the company.
"Putting it simply, we have started our road to sustainable BEE at no cost to Ellies or our new investors," said Ellies CEO Wayne Samson.
As other black investors hold some 4.2% of the company's shares, black ownership of Ellies is now at more than 10% of issued shares.
"The equity deal marks the initial milestone in a long-term BEE strategy, setting Ellies on track to achieve our targeted minimum 26% BEE shareholding in due course," Samson said.
Samson pointed out that the deal will immediately benefit black entrepreneurs, with Famatla committed to supporting Ellies Installer School which will train individuals to start satellite installation businesses as outsourced service providers to Ellies.
Ellies share listed at R2.10, higher than the R2 a share price in the pre-listing private placement, giving the company a market capitalisation on listing of R490.4m.
Shortly after the midday the share was trading at R1.950.
Investor confidence in Ellies' growth prospects was reflected in the oversubscription of the pre-listing private placement.
As part of the private placement Ellies raised R62m, which Samson says will enable Ellies to continue expanding in the fast growing African satellite market estimated to be worth $3bn by 2015.
"We will continue to pursue organic growth, particularly in the ElSat Rentals and Corporate Services operations, which offer satellite products and installation services to the corporate and private markets."
The group also plans to pursue strategic acquisitions after listing which will enhance infrastructure, expand product lines and expose Ellies to new networks, all aimed at further boosting bottom line growth.
- I-Net Bridge
