Northstar set to complete Nera telecommunications take-private
Northstar Pacific Partners has agreed to buy a controlling 50.05% stake in Nera Telecommunications from power conversion specialist Eltek and is offering to buy the entire company for S$177.3 million ($145 million). This is the Indonesian GP's first foray into the Singapore market.
Northstar - through its newly-incorporated unit Asia Systems - will acquire 181.1 million shares from Eltek at a price of S$0.49 apiece. This represents a discount of 5.8% from NeraTel's last closing price on Monday, as well as a premium of 10.6% over its 12-month volume weighted average. The transaction value also implies a 1.84x premium to the company's net asset value (NAV) per share as of September.
The private euqity player will extend the same offer for the remaining shares, as required under Singaporean takeovers and mergers legislation.
Headquartered in Singapore, NeraTel offers solutions and services from satellite communications and wireless infrastructure networks to internet protocol, broadcast network infrastructure and payment solutions. It serves customers across Asia, the Middle East and North Africa.
"We are pleased that after several months of negotiations, Eltek has chosen Northstar's offer over other competing options," said Ashish Shastry, Singapore-based managing partner of Northstar. "Both parties have reached what we believe is a fair deal, in which other shareholders can participate through Northstar's mandatory general offer."
Standard Chartered Bank advised Northstar in the transaction.
Northstar - which predominantly focuses on Indonesia - manages a $1.2 billion pool of capital dedicated to Southeast Asia. In 2010, the PE firm closed its third fund at $820 million, well above the original target of $500 million. Last year, Northstar agreed a cross-investment deal with TPG Capital that saw the firms take minority stakes in each other.
Recent transactions completed by the Indonesian GP include the acquisition of a 20% stake in tire manufacturer Multistrada Arah Sarana for $78 million and a $200 million investment in Triputra Agro Persada, an Indonesian oil producer, alongside Government of Singapore Investment Corp. (GIC).
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