Eltek ASA: Eltek agrees to sell all shares in Nera Telecommunications
(Thomson Reuters ONE) -
Drammen, 10 February, 2012: Reference is made to enclosed joint announcement by
Nera Telecommunications Limited (NeraTel) and Singapore Technologies Electronics
Limited (ST Electronics), regarding the proposed acquisition of NeraTel by way
of a scheme of arrangement ("the Transaction"). As part of the proposed
Transaction, Eltek ASA (Eltek) has agreed to sell all its shares in NeraTel to
ST Electronics for a consideration of approximately NOK 375 million. The
proposed Transaction marks the final step in Eltek's strategic refocusing on its
power electronics business.
The offer price is SGD 0.45 per share, equalling a market capitalization of SGD
162,853,650 (approximately NOK 750 million at the current exchange rate) on a
100% basis. Eltek's 50.05% holding equates to SGD 81,426,825 (approximately NOK
375 million). The offer is structured as a cash consideration of SGD 0.39 per
share and a dividend of SGD 0.06 per share, payable upon completion of the
Transaction.
Assets and liabilities affected by the Transaction will be reported as 'held for
sale' per 31 December, 2011, at its carrying amounts. The proposed Transaction
is expected to upon completion generate a net gain in Eltek's P&L but the size
of this will not be known until closing of the Transaction, as this will depend
on foreign currency development, net profit in the company up to closing and
other factors.
The net proceeds from the Transaction will strengthen Eltek's financial platform
to further develop its strong position within its core business segments. NOK
100 million of the net proceeds will, in accordance with the loan agreement, be
used as an extraordinary repayment on existing term loan. The proposed
Transaction will reduce Eltek's reported net debt by the difference between net
proceeds and net cash in NeraTel. Net cash in NeraTel amounted to NOK 230
million per 30 September 2011.
The Transaction is structured as a Scheme of Arrangement, and will accordingly
be subject to the approval in a shareholders' meeting of NeraTel and the
approval (sanction) by the High Court of Singapore. Eltek has, subject to
certain conditions, undertaken to vote in favour of the Transaction. The
Transaction is also conditional upon regulatory approvals and certain other
customary conditions. Rippledot Capital has been appointed by Eltek as financial
adviser.
The Transaction is expected to be completed in July 2012.
Reference is made to the attached for further details.
For further information, please contact:
CFO Pål Skistad, Eltek ASA, tel: +47 908 50 378
Please see the enclosures to this release for more detailed information in
accordance with the requirements set out in Section 3.4 of the Continuing
Obligations for companies listed on the Oslo Stock Exchange.
About Eltek ASA:
Eltek is a strategic technology partner within power solutions through Eltek
(power), and a regional supplier of transmission systems, satellite
communications and infocomm systems through Nera Telecommunications. The
Company reported revenue of NOK 4 billion in 2010, and has close to 2,700
employees in close to 40 countries. Following the divestment of Nera Networks,
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 Oslo Stock Exchange and headquartered
in Drammen, Norway.
About NeraTel:
Nera Telecommunications offers radio transmission, satellite communications and
infocomm equipment and services to the Asian markets. Headquartered in
Singapore, NeraTel is 50.05 percent owned by Eltek ASA and separately listed on
the Singapore Stock Exchange. The company counts more than 500 employees and
reported revenue of NOK 834 million in 2010.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Attachment 1- Additional info in acc w Sec 3_4 of Cont Obligations:
http://hugin.info/86881/R/1584703/495863.pdf
Attachment 2 - Joint Announcement:
http://hugin.info/86881/R/1584703/495864.PDF
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
[HUG#1584703]
Unternehmensinformation / Kurzprofil:
Datum: 10.02.2012 - 15:55 Uhr
Sprache: Deutsch
News-ID 113473
Anzahl Zeichen: 5177
contact information:
Town:
Drammen
Kategorie:
Business News
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