Altor acquires significant ownership stake in Eltek
(Oslo, 9 November 2010) Altor Fund III (“Altor”) has acquired 54,339,701 shares in Eltek ASA, through Ketlav Invest AS, representing 16.5 per cent of the outstanding shares in the company. Altor has a positive view on the long term potential of Eltek despite the company’s short term strategic and financial challenges. Altor is looking forward to contribute to the future development of Eltek in close cooperation with current management and other shareholders.
-Altor has closely followed Eltek and the telecom power systems market for a number of years and has been impressed by the company’s overall performance in a challenging market, particularly as it relates to Eltek Valere. We remain positive on Eltek’s long term outlook despite the strategic and financial challenges facing the company short term. Our objective is to be an active owner and to contribute to the future development of the company in close cooperation with current management and other shareholders, says Hugo Maurstad, partner in Altor Equity Partners and chairman of the board in Ketlav Invest.
Altor Fund III has acquired 54,339,701 shares in Eltek, through Ketlav Invest, representing 16.5 per cent of the shares outstanding in the company. The shares have been acquired through a block trade at an average price of NOK 3.20 per share, representing a premium of 15.5 %, compared to the closing price for the Eltek share on Monday 8 November 2010.
Eltek is a global power conversion and microwave transmission specialist. Eltek carries out its business through three main companies and their subsidiaries: Eltek Valere, Nera Networks and Nera Telecommunications. The group has approximately 3,000 employees in more than 50 countries and does business in over 100 countries worldwide.
– Eltek Valere’s leading global market positions in a number of attractive niches in the telecom power systems markets, together with the potential to further develop new products targeting alternative energy sources, are attractive features that can make Eltek an attractive investment opportunity, says Maurstad and continues:
– Altor has extensive experience from working together with other financial partners to support our management teams, and is looking forward to leverage Altor’s experiences and network during the period that lies ahead for the company. Even though further financial and strategic restructuring may be needed, Altor will fully support Eltek and its management team. We support the current strategic direction which involves increased focus on growing Eltek Valere based on its high efficiency technology portfolio while evaluating strategic options for the company’s non-core assets.