Eltek Reports Securing of $4.2M Investment from Nistec Ltd.
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.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.