For over two years, Yosef Maiman, the former controlling shareholder in Ampal-American Israel Corporation (Bulletin Board: AMPLQ; TASE:AMPL), which has collapsed, tried to sell his 24.1% stake in Eltek Ltd. (Nasdaq: ELTK), a Petah Tikva-based manufacturer of printed circuit boards. After Nasdaq closed yesterday, Eltek announced an agreement for the sale of Maiman's shares in the company to Nistec Ltd., owned by Yitzhak Nissan, which will also invest in the company in exchange for an allotment of shares.
Nistec will invest $4.2 million in Eltek at $1.19 per share (3% less than Eltek's closing price yesterday). It will also acquire Maiman's stake at $1.45 per share (an 18% premium over yesterday's closing price) for atotal of $2.3 million. Following the two transactions, which require approval of Eltek's shareholders at the general meeting which will be held in October, Nistec will own 50.5% of Eltek.
Eletk's share price rose about 14% at today's opening on Nasdaq.
Nistec, founded by Nissan in 1985, after he left Telrad Networks Ltd., is a provider of electronic manufacturing services (EMS) and design services for printed circuit boards. Headquartered in Petah Tikva, it has manufacturing plants in Katzrin and Maalot, and has 460 employees.
"Investing in Eltek adds an important link in the chain to our group, combining the design and assembly with the production of PCBs," said Nissan. "I believe this investment will greatly support Eltek's growth strategy in its existing markets while allowing it to enter into new markets."
Maiman acquired his Eltek stake in 1988 from Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Koor Industries Ltd. (TASE:KOR), and sold some shares over the years. Despite the modest proceeds from the current sale, he has made a profit on the investment.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2013
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