Eltek ASA said that it agreed to sell all its shares in Nera Telecommunications Limited or NeraTel to Singapore Technologies Electronics Limited or ST Electronics for a consideration of about NOK 375 million.
The offer price is SGD 0.45 per share, equalling a market capitalization of SGD 162.85 million or approximately NOK 750 million.
Elteks 50.05% holding equates to SGD 81.43 million or 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.
The proposed Transaction will reduce Elteks 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 expected to be completed in July 2012.
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