Elec associate in asset sale

A 42 per cent-owned associate of Elec & Eltek International Holdings plans to sell its printed circuit board business to a third party for about US$516 million.

The company said its associate, Elec & Eltek International Co (EEIC), entered into a letter of intent with an investor on the proposed sale.

EEIC is an investment holding company listed on the Singapore stock exchange and it holds 100 per cent of the printed circuit board business.

If the disposal proceeds and is completed, EEIC would no longer hold any operating assets.

Elec & Eltek did not identify the investor yesterday, saying only it was a leading private equity firm which makes direct investments in private and public companies.

Elec & Eltek said a due diligence investigation of the proposed deal would be undertaken by the investor and its advisers.