ELB Group will be undertaking a restructuring of its Engineering Services Business; a downsizing of its head office function; and a potential sale of its Australian equipment business – ELB Australasia.
The requirement to implement the proposed initiatives has been driven by the depressed trading environment as well as the losses incurred on the Gamsberg zinc project in South Africa’s Northern Cape Province.
Following completion of the proposed intiatives, the company is expected to be appropriately structured for the current market environment and will consist of a market leading African equipment distribution business offering a range of earthmoving, construction, mining and quarrying equipment from a single supplier; and a restructured and refocussed engineering business operating within a clearly defined area of expertise.
Depending on the timing of the completion of the proposed initiatives, and to the extent necessary, the ELB Group may utilise bridging finance and/or undertake a capital raise in an appropriate form.
The proposed initiatives will be subject to customary conditions precedent, including obtaining of shareholder and regulatory approvals as may be required.