Official homepage:

None

Branch:

Trade (batteries)

Status:

Established

Announced intention on1:

Ø

Official process initiated on2:

Ø

Registered on/in:

20-01-2006, Bronnoysund (Norway)

Seat before SE:

Ø

Seat of SE:

Hertfordshire (UK) since 11-06-2007

Form of establishment:

Ø

Companies concerned:

Eltek Norway and Eltek Sweden

Corporate governance structure before SE:

Corporate governance structure of SE:

One-tier3

Total number of employees worldwide:

No employees

Countries of operation:

Ø

Countries concerned:

Ø

National trade unions involved:

n/a

European trade union federations involved:

n/a

EWC formerly existed:

n/a

Establishment of SNB:

n/a

Board-level employee representation before SE foundation:

Ø

Distribution of SNB seats:

n/a

Content of agreement:

n/a

Motives:

Eltek considers Narada an interesting and possible profitably company and is therefore helping them into Europe (“taking them to Europe”) by establishing the SE. One of board members says that – since batteries are a large part of their purchase, they wanted to have “their own” company. The Chief Financial Officer in Eltek emphasized that they wanted to be able to move easily between the European countries. Narada would serve as an example of foreign (as in non-European) companies, by European partners, using SE as a way of establishing a European branch.

Comments:

Narada is originally a Chinese battery company wanting to get into the European market (http://www.naradabattery.com/Company/ Group.html). Eltek is a Norwegian specialist telecom power company, established in 1971, operating in approx 20 countries and has approx 600 employees in Norway (www.eltekenergy.com). The SE is formally established by Eltek Norway and Eltek Sweden (to cover the claim of being present in more than one European country). Narada Europe is 40% owned by Eltek and 60% by the Chinese Narada. The CEO of Narada is the head of Eltek Britain. The reason for choosing Norway as country of establishment is the fact that Eltek is a Norwegian company (registered at the Oslo Stock Exchange).

The company has no employees and therefore according to the current regulations (to the Norwegian SE Act) no procedures have been conducted. Both the management and the board member confirm that employee participation has not been an issue. However, by choosing Norway and Sweden as participating countries, the company covers two countries with extensive rights ofemployee board representation (if more than 30 employees). Eltek itself has two board members elected by the employees, but no EWC.

Narada SE transferred its seats from Norway to the UK on 11-06-2007. It has four directors in a single-tier board. At present, two are Chinese, including the chairman, and two are Norwegian. There are no details on the other interests of the two Chinese directors, but one of the Norwegian directors is the CEO of CNERA Networks AS in Norway, while the other is the finance director of Eltek ASA, also in Norway.

Last update:

17-07-2007

References:

• Supplement of the Official Journal 2006/S87-01210

• Supplement of the Official Journal 2007/S 119-145390