Eltek is looking for a buyer with deep pockets
30 May, 2013
Josef Maiman, Eltek's main shareholder (24%) has entered financial difficulties. "As a result, we are currently investigating the possible sale of our company or substantially all of its assets"
“As a result, we are currently investigating the possible sale of our company or substantially all of its assets”
The Israeli 40 years old Printed Circuit Boards provider Eltek Inc. (NASDAQ:ELTK) is actively searching a buyer for the company or its assets, following the financial chaos related to its biggest shareholder.
In a SEC filing from April 30, 2013, the company revealed that Mr. Josef Maiman, through Merhav M.N.F. Ltd. and Integral International Inc., holds 24.1% of its shares and exercises a substantial influence over the management. “Mr. Maiman is currently facing financial difficulties and should he divest all or a significant portion of his interest in us, it may result in a change in control and in our management and our operations could be adversely affected.
“As a result, we are currently investigating the possible sale of our company or substantially all of its assets. The uncertainty arising from this situation may negatively affect our operations as well as the market price for our shares.”
Eltek from Petach-Tikva (center of Israel) employs approximately 300 workers. It provides complex PCB construction up to 30 layers, special Flex-Rigid boards for dynamic applications, built-in Ceramic substrates, full PTFF multilayer constructions for RF & Microwave, and more. These days Eltek develops specialty in Optical Interconnects and High Speed Low Loss LCP substrates.
The company reported total sales of $45.6 million during fiscal year 2012, with net profit of $1.3 million. Revenues for the first quarter of 2013 (ended March 31, 2013) were $12.5 million, compared to revenues of $12.0 million in the first quarter of 2012.
Financial Backup is Needed
Amnon Shemer, Chief Financial Officer of Eltek mentioned that the company has been profitable for the last two years. “Our main challenge continues to be obtaining additional financing, including lines of credit for working capital and investment in fixed assets that are required for the expansion of our production capacity and to replace or refurbish old equipment.”
This situation influence Eltek’s share in NASDAQ. Today its share price (1.1 US Dollars) gives the company a Market Cap evaluation of only $7.73 million.
Josef Maiman owns Ampal, a holding company that invests in Israel-based companies in the energy, chemical, real estate and project development industries. The investment group has entered bankruptcy in late August in an effort to balance a $300 million debt related to Ampal-American Israel Corp.