Ellerines and African Bank: A Toxic Acquisition Recipe – Part B
Dr Odongo Kodongo, Claire Beswick and Helen van den Berg
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Wits Business School, University of the Witwatersrand
Finance, Corporate Finance, Mergers and Acquisitions
In August 2014, seven years after Ellerine Holdings Limited (EHL) had been purchased by African Bank Investments Limited (ABIL), the board of EHL announced that EHL and Ellerine Furnishers (Pty) Ltd (EF) had applied for voluntary business rescue. The new EHL chief executive officer, Mano Moodley, and his board wondered if their decision to partner with ABIL had been too hasty. If they had chosen an alternative partner, would the outcome have been different?