The shareholders of Singapore-based Nera Telecommunications, a manufacturer of ground-based devices for the satellite industry, have voted against the sale of the company to Singapore Technologies Electronics.
In a statement on 6 July, Nera said: “The…
The shareholders of Singapore-based Nera Telecommunications, a manufacturer of ground-based devices for the satellite industry, have voted against the sale of the company to Singapore Technologies Electronics.
In a statement on 6 July, Nera said: “The directors wish to announce that, at the scheme meeting held today, the requisite majority required to vote in favour of the scheme under the Companies Act was not obtained and the parties will not be proceeding with the scheme.
“Accordingly, the company will remain listed, and the shares will continue to trade, on the [Singapore Exchange].”
To be approved, the sale would have required 75% of shareholders to vote in favour of the deal.
In early February this year, Norway-based transmission systems supplier Eltek, which owns a majority 50.05% stake in Nera, had agreed to sell all its shares in the company to ST Electronics, which focuses on the aerospace, electronics and marine systems sectors.
The transaction, which had been valued at approximately S$162.8m (US$125m), would have seen Nera’s remaining shares be delisted from the Singapore Exchange.
With the sale, Eltek had been hoping to refocus its strategy on its power electronics business. The company also said that: “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. The proposed transaction will reduce Eltek’s reported net debt by the difference between net proceeds and net cash in NeraTel. Net cash in NeraTel amounted to NKr230m [US$38m] per 30 September 2011.
Now that the sale has collapsed, Eltek said it “will take a more active role in the further development of NeraTel while considering its strategic alternatives.”
SatelliteFinance understands that a sale of Nera might still be on the cards, depending on the interest in the market.
