E&E INT'L<0033> - Announcement
The Stock Exchange of Hong Kong Limited takes no responsibility for
the contents of this announcement, makes no representation as to its
accuracy or completeness and expressly disclaims any liability
whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.
Elec & Eltek
Elec & Eltek International Holdings Limited
(Incorporated in Bermuda with limited liability)
ANNOUNCEMENT
Further to the announcements of the Company dated 13th December,
1999 and 18th December, 1999, the Board wishes to provide
shareholders of the Company with additional information on the
progress of the negotiations in respect of the Disposal by its
approximately 42% owned associate, EEIC. The Board wishes to inform
the Company's shareholders that negotiations between EEIC and the
Intended Purchaser are on-going and the execution of the definitive
documentation in agreed form is not expected to be completed by 11th
February, 2000 as previously scheduled.
Shareholders should exercise caution in dealing in the shares of the
Company.
Further to the announcements of Elec & Eltek International Holdings
Limited (the "Company") dated 13th December, 1999 and 18th December,
1999, the board of directors (the "Board") of the Company wishes to
provide shareholders of the Company with additional information on
the progress of the negotiations in connection with the letter of
intent (the "LOI") that the Company's 42% owned associate, Elec &
Eltek International Company Limited ("EEIC") had entered into with
an independent private equity investor (the "Intended Purchaser").
Pursuant to the LOI, EEIC proposed to dispose of its printed circuit
board business for a proposed consideration of approximately US$516
million (approximately HK$4 billion) (the "Disposal").
The previous announcements stated that the Disposal would be subject
to, inter alia, the completion of a due diligence investigation, the
execution of definitive documentation in agreed form that had yet to
be negotiated then, and the fulfilment of certain conditions
precedent, including but not limited to the approval of the
shareholders of EEIC in a general meeting to be convened. It was
also announced previously that the due diligence investigation was
expected to be concluded, and the definitive documentation would be
executed, by not later than 11th February, 2000. However,
negotiations between EEIC and the Intended Purchaser as well as the
due diligence investigation are still on-going. Accordingly, the
execution of the definitive documentation in agreed form is not
expected to be completed as scheduled and currently, no timetable
for such execution has been fixed.
The Board is aware of the concern of the shareholders of the Company
over the status of the Disposal and will endeavour to inform the
Company's shareholders of material developments, through timely
announcements, as soon as practicable.
In the meantime, shareholders of the Company are advised to exercise
caution when dealing in the shares of the Company.
By Order of the Board of
Elec & Eltek International Holdings Limited
David So Cheung Sing
Chairman
Hong Kong, 11th February, 2000
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