Eltek accepted fine for incomplete listing
Eltek ASA has been imposed a fine of NOK 600,000 by Økokrim (the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime) for incomplete registration of insiders in connection with the sale of Nera Networks in early 2011. To the company's knowledge, Økokrim does not suspect that anyone has traded on misused information related to the transaction.
Eltek was continuously maintaining insider lists in connection with the project. All individuals involved were also made aware that they had been given access to inside information. The background for the fine is that a few of those involved by mistake were not registered in the physical insider list. Furthermore, for some of the insiders, the records included only the date and not the exact timing of the receipt of the inside information.
Eltek takes the matter seriously but is surprised by the size of the fine given that the company was fully aware of the listing requirement for the project, and sought to fulfill its obligations under the Securities Trading Act. In Eltek's opinion, the case should be considered a minor violation. To avoid spending time and resources on a judicial review, Eltek has nevertheless decided to accept the fine.
Eltek has tightened its procedures to avoid similar events in the future.
For further information:
Pål Skistad, CFO Eltek ASA, +47 9085 0378