Eltek ASA (OSE:ELT) had been aiming to complete its refocusing on power electronics business by divesting its 50.05% majority holding in radio transmission, satellite communications and infocomm equipment and services provider Nera Telecommunications Limited (NeraTel, SGX: N01) to Singapore Technologies Electronics Limited (ST Electronics) a subsidiary of Singapore Technologies Engineering Ltd (SGX: S63), in a scheme arrangement where ST Electronics was aiming to gain all NeraTel shares. It would have netted Eltek around 375 million NOK.
Today a Scheme Meeting in accordance with Singapore Code on Take-overs and Mergers was held. The requisite 75% majority required for the scheme arrangement to go through was not attained and the sale thus falls apart. NeraTel remains a listed company with Eltek still maintaining its majority. Going forward Eltek said it aims to take a more active role in developing the company while considering its strategic options. Eltek was hoping to use the proceeds to repay a term loan and strengthen its financial platform.
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