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Case Study: Ellerines and African Bank: Suitable Suitors? Part A

Title
Ellerines and African Bank: Suitable Suitors? Part A 

Author
Dr Odongo Kodongo, Claire Beswick and Helen van den Berg 

Pages
19 pages 

Product Type
Case 

Reference #
WBS-2015-09 

Teaching Note
Not available 

Institute

Setting
South Africa 

Year
2015 

Keywords
Finance, Corporate Finance, Mergers and Acquisitions



Summary/
Abstract
At the end of the third quarter of 2007, Leon Kirkinis, chief executive officer (CEO) of African Bank Investments Limited (ABIL), unexpectedly arrived at the head office of Ellerine Holdings Limited (EHL), a South African furniture retail group, with a proposal to purchase EHL. For some time, EHL, which derived a substantial portion of its profit from loans provided to customers wishing to buy furniture, had been looking to enter into a deal with a bank as a means of growing its business. Up until the ABIL offer, EHL had been seriously considering a joint venture with Capitec Bank. Now, EHL’s CEO, Peter Squires, and the EHL board had to decide which route to choose.

 


 

 

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