A Company on the Move - Report on Global Sources Ltd.

Aug 06, 2015, 09:05 ET from www.aciassociation.com

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tender offer, approximately 12.6 million shares of the Company's common shares were properly tendered and not properly withdrawn.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informed while announcing the tender offer that if more than 6.6 million shares are properly tendered and not properly withdrawn, then the shares will be purchased - First, from all holders of "odd lots" of fewer than 100 shares who properly tender all of their shares and do not properly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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