NEW YORK, August 6, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Global
Sources Ltd. (NASDAQ: GSOL). Select highlights from the
internally released reports are being made available to the general
public (included below), with access to the entirety of the
research available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=GSOL
Highlights from our GSOL Report include:
- Important Announcement Related to
the June Tender Offer -
On July 29, 2015 Global Sources Ltd.
announced the preliminary results of its cash tender offer to
purchase up to 6.6 million shares of its issued and outstanding
common shares at a price of $7.50 per
share. The offer to purchase shares commenced on June 26, 2015, when the share price was
$6.81, and expired at midnight (NYC
time) on July 27, 2015. The stock had
closed at $6.61 on the date of
expiry.
- Cash Tender Offer Results - Based on the
preliminary count performed by Computershare Trust Company, N.A.,
the depositary for the tender offer, approximately 12.6 million
shares of the Company's common shares were properly tendered and
not properly withdrawn. According to the announcement the number of
shares tendered was found to be greater than the number of shares
offered by Global to purchase. And therefore, it would be necessary
to apply the "odd lot" priority and pro-ration provisions as
described in the Company's offer to purchase.
- Method to be Followed - The Company had informed while
announcing the tender offer that if more than 6.6 million shares
are properly tendered and not properly withdrawn, then the shares
will be purchased - First, from all holders of "odd lots" of fewer
than 100 shares who properly tender all of their shares and do not
properly withdraw them before the expiration date; and second, from
all other shareholders who properly tender shares, on a pro-rata
basis.
- Implication of the Preliminary Results -
Based on the preliminary results of the tender offer, Global will
become a "controlled company" under the NASDAQ rules once the
completion of the tender offer happens. As can be noted in the
Company's offer to purchase, Global has no present intention to
avail itself of the corporate governance exceptions afforded to a
"controlled company" under the NASDAQ rules.
- Important Information at the Time of Offer
Commencement - The maximum total number of shares that the
Company was offering to purchase represented approximately 22.05%
of the company's total number of common shares issued and
outstanding as at April 30, 2015,
i.e. 30.2 million shares. The Company informed that the tender
offer is not conditioned upon any minimum number of shares being
tendered or the availability of any financing.
- Other Monetizing Transactions by the
Company - On July 07,
2015, Global Sources Ltd. announced that the Company through
its Shenzhen, China subsidiary has
entered into a Letter of Intent (LOI) for the sale of an investment
property that the Company has on the 50th floor of the Shenzhen
International Chamber of Commerce Tower in Shenzhen, China, which is said to be
approximately $21.7 million. Earlier
on July 01, 2015 Global Sources
announced that it has sold its 60.1% stake in its subsidiary,
eMedia Asia Limited to UBM plc which prior to the transaction held
39.9% in eMedia, for an approximate transaction value of
$9 million in cash, subject to
adjustments for cash and working capital.
To find out how this influences our rating on Global Sources
Ltd. read the full report in its entirety here:
http://www.aciassociation.com/?c=GSOL
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