Global Sources Q4 Profit Down;announces Tender Offer For Up To $50 Mln Of Shares

(RTTNews) - Global Sources Ltd.(GSOL) said that its fourth-quarter IFRS net income attributable to the company's shareholders was $5.0 million or $0.14 per share, down from $11.2 million, or $0.31 per share in fourth quarter 2012.

Non-IFRS net income was $10.9 million or $0.30 per share, as compared to $13.3 million, or $0.37 per share for the fourth quarter of 2012.

Revenue was $60.1 million, as compared to $66.9 million last year.

For the first half of 2014 ending June 30, 2014, Revenue is expected to be in the range of $88.0 million to $90.0 million, representing a decrease of 3% to 5%, as compared to $92.7 million for the first half of 2013. IFRS EPS is expected to be in the range of $0.14 to $0.18, as compared to $0.62 per diluted share in the first half of 2013. Non-IFRS EPS is expected to be in the range of $0.18 to $0.22, as compared to $0.37 per diluted share for the same period in 2013.

In a separate press release, Global Sources said it intends to commence an issuer tender offer before the end of April 2014, with expected completion before the end of May 2014, for approximately 5 million shares, or approximately 14.4% of its outstanding common shares as of February 28, 2014, at a purchase price of $10.00 per share in cash.

Global Sources expects to fund the tender offer with cash on hand. As of December 31, 2013, Global Sources had total cash, cash equivalents and available-for-sale securities of approximately $143.8 million.

The offer will afford tendering shareholders liquidity for some or all of their shares and will permit them to have their shares repurchased at a 47.9% premium over the closing price per share of $6.76 on March 12, 2014, the last full trading day before the date of this announcement. Shareholders who elect not to tender their shares in the offer will increase their relative percentage ownership in Global Sources following completion of the offer.

Global Sources has been informed that its Directors and Officers who own shares can be expected to tender their shares in the offer. Such Directors and Officers beneficially owned approximately 48.6% of Global Sources' outstanding common shares as of February 28, 2014.