Singapore Technologies Electronics, which focuses on the aerospace, electronics and marine systems sectors, has agreed to buy Nera Telecommunications, a local manufacturer of ground-based devices for the satellite industry.
The consideration for…
Singapore Technologies Electronics, which focuses on the aerospace, electronics and marine systems sectors, has agreed to buy Nera Telecommunications, a local manufacturer of ground-based devices for the satellite industry.
The consideration for each Nera share is S$0.45 (US$0.36) comprising the following: S$0.39 (US$0.31) to be paid in cash by ST Electronics; and S$0.06 (US$0.05) to be paid in cash by Nera as a permitted dividend on or prior to the effective date of the scheme. Excluding the dividend, the deal is valued at approximately S$141.1m (US$112m).
Following this transaction, which is expected to be financed by ST Engineering with internal cash resources, Nera’s shares will be delisted from the Singapore Exchange.
Norway-based transmission systems supplier Eltek, which currently owns a majority 50.05% stake in Nera, has agreed to sell all its shares in the company. The sale will mark “the final step in Eltek’s strategic refocusing on its power electronics business”, the Norwegian company stated.
Back in January 2011, Eltek agreed to sell microwave RF systems manufacturer Nera Networks AS to US-based wireless backhaul specialist Ceragon Networks for US$48.5m.
“The net proceeds from the transaction will strengthen Eltek’s financial platform to further develop its strong position within its core business segments. NKr100m [US$17.5m] of the net proceeds will, in accordance with the loan agreement, be used as an extraordinary repayment on existing term loan,” Eltek added.
Rippledot Capital has been appointed by Eltek as financial adviser, while ST Electronics hired PwC Corporate Finance.
Lee Fook Sun, the president of ST Electronics, said in a separate statement: “This acquisition will add Nera’s capabilities in telecommunications and satellite communications to our solutions offering, and enhance our position to promote our companies’ capabilities and services internationally.”
The transaction, which is subject to regulatory and shareholder approval, is scheduled to be completed in July 2012.
