Shares of Norway-based Eltek ASA climbed around 17 percent in the morning trading in Oslo after the company agreed to be acquired by Delta Electronics, Inc. (DLETF.PK, DLETY.PK), a Taiwan-based provider of power and thermal management solutions.
Under the deal, Delta's unit Deltronics (Netherlands) B.V. will acquire Eltek through public offering at 11.75 Norwegian kroner per share. The estimated total value for the deal is 3.9 billion kroner or $530 million. The transaction is expected to complete by June 2015.
Etablished in 1971, Eltek manufactures, and markets power supplies. The firm has 2,400 employees at 60 offices in almost 40 countries worldwide, mainly in European and American markets. Eltek reported revenues of 3.7 billion kroner in 2013. The company focuses on power electronics markets and is one of the leaders in telecom power business and a growing force in industrial and datacenter applications.
Delta said the strategic acquisition marks a significant step to the firm and brings to both Delta and Eltek the unique synergy to leverage engineering, sales and global operations platforms.
According to the firm, the transaction is mutually beneficial and unleashes huge potential to solidify its leadership and long-term growth opportunity in global power business.
In Oslo, Eltek shares were trading at 11.45 kroner, up 17.20 percent.
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