Nistec to Buy Eltek in Reverse IPO
PETACH-TIKVA, ISRAEL -- Electronics manufacturing services provider Nistec will acquire a majority stake in PCB fabricator Eltek for $6.3 million.
The deal includes the purchase of 3.5 million ordinary shares in Eltek for $4.1 million, and the purchase of all holdings of Eltek's major shareholder, Yossi Maiman, for $2.3 million.
Upon completion of the transactions, Nistec will hold a 50.5% stake in Eltek.
The investment agreement and certain ancillary agreements are subject to approval at a shareholder meeting scheduled to take place within 60 days.
Nistec is privately held and owned by Yitzhak Nissan.
Eltek chairman Erez Meltzer said that after 25 years as controlling shareholder, Maiman decided to sell his holdings. "Nistec's investment in Eltek will enable Eltek to continue to grow and strengthen its leading position in the high-end PCB industry and expand into new niche markets within the industry."
Nistec's Nissan said, "Investing in Eltek adds an important link in the chain to our group, combining the design and assembly with the production of PCBs. Our joining forces with Eltek will ensure our ability to deliver a full solution for our customers' needs."
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