Eltek ASA

Eltek Valere minority shareholders elect to sell all shares

Pressemelding   •   des 11, 2009 09:43 CET

As communicated on 2 July 2009, the minority shareholders of Eltek Valere have delivered a Put Option Notice for the sale of their shares to Eltek ASA. As communicated on 6 November 2009, the valuation process has been completed. Subsequently, the minority shareholders have now provided written notice to Eltek ASA for the sale of all their shares (i.e. 9.1% in Eltek Valere AS and 9.9% in its subsidiary Eltek Energy Holding Inc.). The total consideration for the shares is approximately NOK 235 million. Eltek ASA intends to exercise its right to issue in lieu of cash a promissory note at the put closing (estimated to take place on or around 18 December 2009), with a 24 months maturity period and a coupon of 8% interest increasing 1%-point every quarter with a maximum of 15%. The loan agreements with the banks allow for adjustments of covenants to reflect the valuation of the put options.

In addition, disputes related to the Contribution Agreement of 2007 and the contribution paid to the former Valere shareholders are currently in arbitration, expected to be concluded early in 2010.

For further information, please contact:
CFO Pål Skistad, tel: +47 908 50 378