The Board of Directors of ELTEK ASA recommends the voluntary cash offer from Deltronics (Netherlands) B.V. (Delta), a wholly owned subsidiary of Delta Electronics, Inc. Altor Fund III (Altor) and other large shareholders representing in total 76.6 % of the shares have irrevocably accepted the offer. Prior to this transaction Altor hold 32 % of the shares.
The consideration offered will be NOK 11.75 per Eltek share (the ‘Offer Price’), which represents a premium of approximately 20.3% to the closing share price of Eltek on Friday 12 December 2014. The Offer Price represents a premium of 35.1% to the closing share price of Eltek on 30 October 2014, the last trading day prior to the announcement from Eltek that it would engage in a process to evaluate future strategic options for the company.
Altor acquired a 16.5% stake in Eltek in 2010, and quickly increased its ownership in the company to 32 %. Over the last four years, the company has experienced substantial strategic and operational improvements.
Eltek has exited non-core businesses such as Nera Networks, NeraTel, the Automotive business and the Renewable business. Building on its technology advantage from Telecom, Eltek has stepped up its focus on industrial applications and entered into the rapidly growing Data center market.
Financial performance has improved and stabilized, and EBITDA has improved from NOK 276 million in 2010 to NOK 441 million in 2013. The company has also been refinanced, providing the financial resources to restructure and grow its business.
“When Altor acquired the first shares in 2010, we saw a company with a unique technology platform, but with strategic and financial challenges. It has been a privilege to work with Eltek’s management and Board of Directors over the last four years, seeing the company become an admired leader in the Telecom Power Supply market”, says Hugo Maurstad partner at Altor Equity Partners and board member of Eltek. He continues, “Eltek, with its current focused strategy is a highly attractive complement to Delta’s existing businesses, and I believe they are the right owners to take the company through its next phase of development.”
Delta will put forward a recommended voluntary cash offer pursuant to the Norwegian Securities Trading Act for all of the shares in Eltek. The offer is conditioned on customary regulatory approvals.