News this week: NASDAQ-listed Global
Sources announced this week
that the company plans to launch a cash tender offer for up to US$50 million in
outstanding common shares at US$7.50. That represents a 43% premium over the
closing price on Tuesday (US$5.23). Under the terms of the offer, the company
may buy back as many as 6.67 million common shares or close to 22% of
outstanding shares. According to its financial statement, as of 31st
March 2015, the company had US$103.6 million in cash and cash equivalents.
Global Sources has
made similar offers three times in the past - buying back US$50 million worth
of shares at US$10 per share in 2014, US$100 million at US$9 per share in 2010
and US$50 million at US$8 per share in 2008.
Merle A. Hinrich, Global
Sources’ executive chairman, said, “I am pleased to announce that after
carefully considering all of the options to return capital to the shareholders,
the Board of Directors has approved a tender offer as the most efficient
alternative at this time. At the close of the transaction, Global Sources will
still have a strong balance sheet, giving us the financial strength to pursue
our growth initiatives and other options to invest in the business.”
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