Neratel

[yeokiwi]

It'd appear so...
In the 1st place, I was wondering why they embarked on a Scheme Offer instead of immediately buying over Eltek's 50.05% stake and then doing a General Offer + mopping up shares in the open market. They'd have immdiately gotten majority control even if they don't succeed in privatising NeraTel.

I think this was the questions on a lot of shareholder's mind at the scheme meeting too. According to Jorgen Larsen (Non-Exec Director and Adviser to Eltek ASA), Eltek tried to sell their 50.05% stake to companies in many countries including Asia, China and ME. It appears that no one is interested in just buying over Eltek's stake.

Personally I still find it hard to believe that Eltek spend nearly 2 years trying to sell their stakes and all they managed to attract was a half-hearted offer from ST Eng.

So either the company is really being over-valued by Mr. Market and its shareholders or there are some pertinent and material facts not in the public domain that stop companies from buying into what appeared to be a fundamentally strong and well run company.

Frankly the whole thing is a little fishy or maybe I'm being watching too many conspiracy theories shows. (Vested)

Nera Telecomm is basically just a distributor and a system solution provider.
The danger of buying Nera is that the Nera equipment source, Ceragon, may stop supplying NeraTel.
Or, Ceragon may setup another company to compete with Nera.

But, I thought it is kind of stupid since Nera network of business in asia is pretty extensive and also, the group's expertise and experience in provides system solutions.