Eltek Valere valuation related to Put Option Notice

As the Company communicated on 2 July, 2009, the minority shareholders of Eltek Valere have delivered a Put Option Notice for the sale to Eltek ASA of their shares (i.e. 9.1% in Eltek Valere AS and 9.9% in its subsidiary Eltek Energy Holding Inc.). The Put Option Notice was delivered under the Stockholders Agreement for Eltek Valere, which relates to the acquisition of Valere Power by Eltek Energy in 2007. External valuation firms have now concluded on the fair market value of Eltek Valere, and these results indicate that provisions made by Eltek ASA to cover the value of the put options should be increased from approximately NOK 94 million to approximately NOK 235 million.

In the coming weeks, the minority shareholders must provide written notice to Eltek ASA on the sale of shares. Eltek ASA has a right to issue in lieu of cash a promissory note at the put closing, with a 24 months maturity period and a coupon of 8% interest increasing 1%-point every quarter with a maximum of 15%. As earlier communicated, agreements with the banks allow for adjustments of covenants to reflect the valuation of the put options.

In addition, disputes related to the Contribution Agreement of 2007 and the contribution paid to the former Valere shareholders are currently in arbitration, expected to be concluded early in 2010.

For further information, please contact:

CFO Pal Skistad, tel: +47 908 50 378

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

SOURCE: Eltek ASA

Related terms: energy, market, note