NeraTel

NeraTel: lifts halt at 4.15pm. Asia Systems has agreed to acquire 181.1m shares in NeraTel (50.05% stake) owned by Eltek ASA, via an off-mkt transaction. Pursuant to SGX rules, Asia Systems is required to make a mandatory unconditional cash offer for all the remaining shares at an offer price of $0.49/sh. This represents 185% premium to the NAV/sh of $0.1721. The Offer is unconditional in all respects, and the offeror does not intend to revise the offer price. Asia Systems is ultimately controlled by The Northstar Group, which manages US$1.2b in committed equity capital dedicated to SE Asia. Following close of the Offer, the Offeror intends to undertake a strategic and operational review of the organisation, businesses and operations of the Group, and to evaluate various strategic options. The Offeror intends to ensure continuity in the operations of the Group, and has no present intention to (a) make any major changes to the existing business of the Company, (b) redeploy the fixed assets of the Company, or (c) discontinue the employment of the employees of the Group. Nonetheless, the Offeror retains the flexibility at any time to consider any options or opportunities which may present themselves. The Offeror nonetheless intends to be a long term investor in the Group and does not intend to divest, sell or dispose of the Shares which it acquires pursuant to the Acq in the 6 months following the close or lapse of the Offer. The Offeror, if/when entitled, intends to exercise its rights of compulsory acquisition and does not intend to take steps for any trading suspension in the event that < 10% of NeraTel shares are held in public hands. In addition, the Offeror also reserves the right to seek a voluntary delisting of the Company. More details to be found in the Offer Document to be dispatched within the next 14-21 days.