Eltek ASA: Eltek sells all its shares in NeraTel for NOK 418 million in cash
(Thomson Reuters ONE Via Acquire Media NewsEdge)
Drammen, 19 November 2012: Eltek ASA ("Eltek") has today entered into an
agreement to sell all its shares in Nera Telecommunications Ltd ("NeraTel") to
Asia Systems Ltd. for a cash consideration of SGD 88.8 million (approximately
NOK 418 million) before transaction costs. No conditions are outstanding and
Eltek expects to complete the transaction early next week. The transaction marks
the final step in Eltek's strategic refocusing on its power electronics
Eltek's shareholding of 181,136,000 shares in NeraTel corresponded to a
shareholding of 50.05%. As a result of the acquisition of the shares, Asia
Systems Ltd. will announce a mandatory unconditional cash offer for all the
remaining shares in NeraTel at the same price of SGD 0.49 per share. Asia
Systems Ltd. is a recently incorporated company formed for the purpose of making
the offer, and is ultimately controlled by the Northstar Group, a Southeast Asia
private equity firm. Rippledot Capital has acted as Eltek's financial adviser.
Eltek's strategic focus lies within the power electronics industry, and the
transaction will strengthen the company's financial platform to further develop
the core business activities. All assets and liabilities affected by this
transaction were already 'held for sale' at carrying amounts in Eltek's Balance
Sheet. Based on estimated net cash proceeds of approximately NOK 390 million,
the current valuation of the assets and liabilities, and including accumulated
currency translation effects, the transaction is expected to generate a pre-tax
gain for Eltek of approximately NOK 230 million, to be accounted for as profit
from discounted operations in the Income Statement for the fourth quarter 2012.
In accordance with the existing loan agreement, NOK 100 million of the net
proceeds will be used for an extraordinary loan repayment. Eltek's reported net
debt is expected to be reduced by approximately NOK 160 million as a consequence
of the transaction.
Please see the enclosed document comprising additional information in accordance
with Section 3.4 of the Oslo Stock Exchange's Continuing Obligations.
For further information, please contact:
CFO Pål Skistad, Eltek ASA, tel: +47 908 50 378
About Eltek ASA:
Eltek is a strategic technology partner within power solutions. Eltek reported
revenue of NOK 3.6 billion in 2011, and has close to 2,400 employees in close to
40 countries. Eltek focuses on its core business in telecom power and power
electronics solutions for industrial applications and renewable markets such as
solar power and electric vehicles. Eltek is listed on the Oslo Stock Exchange
and headquartered in Drammen, Norway.
About Nera Telecommunications Ltd:
NeraTel offers radio transmission, satellite communications and infocomm
equipment and services to the Asian markets. Headquartered in Singapore, NeraTel
has been 50.05 percent owned by Eltek and separately listed on the Singapore
Stock Exchange. The company counts approximately 575 employees and reported
revenue of NOK 758 million in 2011.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Eltek ASA via Thomson Reuters ONE
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