Eltek ASA refers to announcement made by Nera Telecommunications Ltd (NeraTel) today where the company informed that it has received an expression of interest and is currently in advanced discussions with a third party which may or may not lead to an offer being made for the outstanding shares in NeraTel.
Such expression of interest does not as yet amount to any offer capable of acceptance and a definitive or binding agreement has not been entered into and the transaction may, depending on how it is finally structured, be subject to conditions. NeraTel and consequently Eltek ASA will make an appropriate announcement in the event that it enters into any definitive agreement. Rippledot Capital has been appointed by Eltek as financial adviser.
Following the divestment of Nera Networks in January 2011, Eltek has evaluated strategic options for the remaining business. Eltek's Board has concluded that the appropriate strategy for the present time is to focus on the continued development of the core businesses in power electronics. The Directors will evaluate the implications of a potential offer for NeraTel and are prepared to contemplate a disposal of Eltek's stake in NeraTel.
Eltek ASA holds 50.05 percent ownership in NeraTel, which is consolidated on a 100 percent basis in Eltek's accounts. NeraTel is separately listed on the Singapore Exchange under the ticker NeraTel, with a total number of shares outstanding of 361,897,000 and a market capitalization of SGD 155 million (approximately NOK 715 million) on a 100 percent basis per February 2, 2012.
For further information, please see www.neratel.com.sg or contact:
CFO Pål Skistad, Eltek ASA, tel: +47 908 50 378
About Eltek ASA:
Eltek is a strategic technology partner within power solutions through Eltek Valere, 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 50.1 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.
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
