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 International Holdings Limited
(Incorporated in Bermuda with limited liability)
ANNOUNCEMENT
On 13th March, 2000, EEIC has formally declined the Final Offer
from the Intended Purchaser in respect of the disposal of its
printed circuit board business.
The board of directors (the "Board" of Elec & Eltek
International Holdings Limited (the "Company" refers to its
previous announcements dated 13th December, 1999, 18th December,
1999 and 11th February, 2000 (the "Announcements" in respect
of the proposed disposal by its approximately 43.7%-owned
associate, Elec & Eltek International Company Limited ("EEIC",
of its printed circuit board business ("PCB Business" to an
independent private equity investor (the "Intended Purchaser"
for a proposed consideration of approximately US$516 million
(approximately HK$4 billion) (the "Disposal". Terms used in
this announcement shall have the same meanings as those referred
to and defined in the Announcements unless otherwise defined.
The 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 at an extraordinary general meeting
to be convened.
Subsequently, EEIC and the Intended Purchaser entered into a
series of negotiations. However, the directors of EEIC are of
the view that the final offer (the "Final Offer" submitted by
the Intended Purchaser does not reflect a fair valuation of the
PCB Business of EEIC and its underlying business prospects; and
thus it will not be in the best interest of EEIC and its
shareholders to proceed with the Disposal.
On 13th March, 2000, EEIC has formally declined the Final Offer,
and all negotiations between EEIC and the Intended Purchaser in
respect of the Disposal have been terminated. Upon termination
of all negotiations with the Intended Purchaser in respect of
the Disposal, the Intended Purchaser has agreed to waive any
break-up fee payable by EEIC, as provided in the LOI and
mentioned in the announcement made by the Company on 13th
December, 1999.
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
Elec & Eltek International Holdings Limited
David So Cheung Sing
Chairman
Hong Kong, 13th March, 2000
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