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 business.
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.