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.