Eltek Announces That Shareholders Have Approved the Sale of 3,532,655 Ordinary
Shares to Nistec Ltd. for $4.2 Million
PETACH-TIKVA, Israel, October 22, 2013
PETACH-TIKVA, Israel, October 22, 2013 /PRNewswire/ --
Eltek Ltd., (NASDAQ: ELTK), the leading Israeli manufacturer of advanced
circuitry solutions, including complex build ups of Rigid and Flex-rigid PCBs,
announced today that at an adjourned shareholders meeting held today, the
Company's shareholders approved the sale of 3,532,655 ordinary shares at
$1.19 per share to Nistec Ltd. ("Nistec"), a leading provider of Electronic
Manufacturing Services and design services.
Nistec will also acquire all of the holdings of Eltek's major shareholder, Mr.
Yossi Maiman (24.1%), and upon completion of the transactions, Nistec will
hold the majority of Eltek's issued share capital (50.5%). The closings of
both transactions are expected to take place within approximately two weeks,
upon the receipt of certain other approvals.
Shareholders approved all of the proposals that were voted on at the meeting,
including, the election of four directors, authority to enter into a
management agreement between the Company and Nistec, the payment of a
finder's fee of $200,000 to Merhav M.N.F Ltd., approval of compensation terms
for the directors, approval of the entry into indemnification agreements
between the Company and its new directors, approval of the grant of
exculpation letters to the Company's directors and officers, approval of the
grant of waiver and release letters to current directors and officers, the
purchase of a "run-off" insurance policy for the Company's current directors
and officers, the purchase of a new directors' and officers' insurance policy
and the adoption of amended and restated articles of association.
Arieh Reichart, President and Chief Executive Officer of Eltek commented, "We
are very pleased that our shareholders approved the transaction with Nistec
and the ancillary proposals that were required in order for the transaction to
be effected. We welcome Nistec and the new members of our board of directors."
"The investment by Nistec is an important validation of our vision and
achievements and will support our long-term growth plans. It will enable our
company to realize its growth potential as well as capitalize on other
opportunities in the diverse markets we serve," concluded Mr. Reichart.
Yitzhak Nissan, CEO and owner of Nistec commented, "We are pleased that the
shareholders of Eltek have given their approval to our investment in the
company. We believe that our investment will greatly support Eltek's growth
strategy. We continue to be excited about the opportunity to develop the
unrealized potential of Eltek by joining forces and look forward to working
together with Eltek's management, with the ultimate goal of providing more
value to our customers and shareholders."
"Nistec is a well-known and highly regarded player in the PCB design and EMS
industry for various electronics segments in Israel. Investing in Eltek adds
an important link in the chain to our group, combining the design and assembly
with the production of PCBs. Our joining forces with Eltek will ensure our
ability to deliver a full solution for our customers' needs," Mr. Nissan
Eltek is Israel's leading manufacturer of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end
of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. For more information, visit
Eltek's web site at http://www.eltekglobal.com.
About Nistec Ltd.
Nistec is a leader in the delivery of innovative electronics manufacturing &
design services. Founded in 1985, Nistec provides one-stop-shop solutions for
electronics outsourcing. Nistec's comprehensive line of services starts with
NPI (new product introduction)and continues through PCB layout design and
board assembly, all the way to full turn-key solutions. Nistec's team,
technology and work process reflect its commitment to excellence, which
guarantees its customer's a competitive edge in manufacturing performance,
quality and cost. With three manufacturing plants in Israel and460 skilled
employees, Nistec serves more than 300 customers in diverse industries such as
telecommunications, RF, medical, defense and aerospace. Nistec's unique suite
of solutions spans the entire product lifecycle - from design, manufacturing
and systems integration, to order fulfillment and after-market services. For
more information, visit Nistec's web site at http://www.nistec.com
Forward Looking Statement:
Certain matters discussed in this news release are forward-looking statements
that involve a number of risks and uncertainties including, but not limited to
statements regarding expected results in future quarters, risks in product and
technology development and rapid technological change, product demand, the
impact of competitive products and pricing, market acceptance, the sales
cycle, changing economic conditions and other risk factors detailed in the
Company's Annual Report on Form 20-F and other filings with the United States
Securities and Exchange Commission.
V.P. Finance & CFO
Tel: +972-3-939-5023| Fax: +972-3-934-2584 |
SOURCE Eltek Ltd.
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