The Northstar Group announced today that it has agreed to buy a controlling 50.05% stake in Nera Telecommunications (NeraTel) from Eltek ASA. As a result of the deal, Northstar is launching a mandatory general offer for all the shares it does not own at $0.49 a share.
Northstar, acting through its newly-incorporated unit, Asia Systems, said it has signed the agreement with Eltek for the latter’s 181.1 million shares in NeraTel. Under SGX rules, Northstar is making the mandatory unconditional cash offer at the same price agreed with Eltek. The acquisition represents Northstar’s first foray into the Singapore market. Northstar does not intend to revise the offer price.
The offer price of $0.49 values the whole of NeraTel at about $177.3 million. While it represents a discount of 5.8% from the last closing price on 19 November 2012, Northstar says it also represents a premium of 1.7%, 10.2%, and 10.6% over NeraTel’s three-month, six-month, and 12-month volume weighted average prices per share, respectively, as well as a premium of about 184.7% to the net asset value (NAV) per share as at 30 September 2012.
Northstar manages US$1.2 billion ($1.5 billion) in committed equity capital dedicated to Southeast Asia. It has a solid track record of actively growing the businesses of its investee companies. To date, it has invested in 20 companies across various sectors, including banking, insurance, retail, oil and gas, coal and mining services and oil palm. Northstar has invested close to US$2 billion with co-investors in the Southeast Asian region.
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