PETACH-TIKVA, Israel, Aug. 19, 2013 /PRNewswire/ -- Eltek Ltd., (NASDAQ: ELTK), the leading Israeli manufacturer of advanced Flex-Rigid circuitry solutions, announced today that it has entered into a $4.2 million investment agreement with Nistec Ltd. ("Nistec"), a leading provider of Electronic Manufacturing Services ("EMS") and design services, to sell Nistec 3,532,655 ordinary shares at $1.19 per share.
Nistec will also acquire all of the holdings of Eltek's major shareholder, Mr. Yossi Maiman (24.1%), for $2.3 million, or $1.45 per share. Upon completion of the transactions, Nistec will hold the majority of Eltek's issued share capital (50.5%).
The investment agreement and certain ancillary agreements are subject to approval at a shareholder meeting scheduled to take place within 60 days.
Nistec is a private company, owned by Mr. Yitzhak Nissan, and is involved in the EMS and the design services business. Founded in 1985, Nistec provides a one-stop-shop solution for electronics outsourcing. Nistec's comprehensive line of services starts with NPI (new product introduction) through printed circuit board ("PCB") design and then PCB assembly, providing a full turn-key solution.Erez Meltzer, Chairman of the Board of Directors of Eltek, who led the investment transaction and the sale of Mr. Maiman's holdings in the Company commented, "After 25 years of being the controlling shareholder of Eltek, Mr. Maiman decided to sell his holdings in the Company to a new owner with strategic ties to the Company's business. Nistec's investment in Eltek will enable Eltek to continue to grow and strengthen its leading position in the high-end PCB industry and expand into new niche markets within the industry. Eltek has presented nice profitability in the last nine quarters and I am confident that it will continue on this track in the future." Arieh Reichart, President and Chief Executive Officer of Eltek commented, "I would like to thank Mr. Maiman for his long relationship with the Company, supporting our 10 fold growth since he first acquired shares in Eltek, and helping in its positioning at the very front of the worldwide Flex-Rigid PCB industry." "We congratulate and welcome Nistec following its decision to significantly invest in Eltek. This investment is an important validation of our vision and achievements and will support our long-term growth plans. For three consecutive quarters Eltek has seen growing demand from its current customer base, and production capacity constraints prevented the full exploitation of this potential. This investment will enable Eltek to fully realize such growth potential as well as other opportunities in the diverse markets we serve," Mr. Reichart concluded.