Stamford Law is advising Norwegian-listed Eltek ASA (“Eltek”) in respect of the divestment (“Divestment”) of its 50.05% interest in the SGX Mainboard-listed Nera Telecommunications Ltd. (“NeraTel”) to Asia Systems Ltd., for a cash consideration of approximately S$88.8 million. The Divestment marks the final step in Eltek’s strategic refocusing on its power electronics business and is expected to complete by early next week. As a result of the Divestment, Asia Systems Ltd. is required, under the Singapore Code on Take-overs and Mergers, to make a mandatory unconditional offer for all the remaining shares in NeraTel.
Eltek is listed on Oslo Stock Exchange and is a strategic technology partner within power solutions. It reported revenue of NOK 3.6 billion in 2011, and has approximately 2,400 employees in close to 40 countries. 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.
NeraTel offers radio transmission, satellite communications and infocomm equipment and services to the Asian markets. Headquartered in Singapore, the company counts more than 500 employees and reported revenue of NOK 758 million in 2011.
Asia Systems Ltd. is a recently incorporated company formed for the purpose of making the mandatory unconditional cash offer, and is ultimately controlled by the Northstar Group, a Southeast Asia private equity firm.
Leading the Stamford Law deal team are Lean Min-tze and Elizabeth Kong.
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