Global Sources CompletesSaleofitsEquity
Stake
in HC International, Inc.
- Companyrecords a realized gain of approximately US$2.0
million -
NEW
YORK,Dec.18, 2007 – Global
Sources Ltd. (NASDAQ:GSOL) (“Global Sources”) andits wholly-owned
subsidiary, Trade Media Holdings Limited (“Trade Media
Holdings”),today completed the sale of their entire equity stake in
HC International, Inc. (SEHK 8292) (“HC”) toIDG
Technology Venture Investment III, L.P. (“IDG”), pursuant to
the Sale and Purchase Agreement announced on December 10th. The total consideration for the 62,652,000 HC
shares sold was approximately HK$96.2 million (representing HK$1.5352 per
HC share) or approximately US$12.3 million (representing approximately
US$0.1968 per HC share).
Global Sources and Trade Media
Holdings, collectively, have now ceased to be a substantial shareholder of
HC.
As a result of the HC share
sale, Global Sources will record a realized gain of approximately US$2.0
million. This figure is the resulting book value after
consideration for an impairment charge of approximately US$2.3 million on
the HC investment, net of US$0.5 million received pursuant to
indemnification obligations of the vendor under the purchase agreement for
the HC investment recorded in the second quarter of 2007, and an impairment
charge of US$743,000 on the HC investment recorded in the fourth quarter of
2006.
Global Sources’ Chief
Operating Officer, John Craig Pepples, has also
resigned as a non-executive director of HC.
About
Global Sources
Global Sources is a leading
business-to-business (B2B) media company and a primary facilitator of
two-way trade with Greater China. The core business is facilitating trade
from Greater China to the world, using a wide range of English-language
media. The other key business segment facilitates trade from the world to Greater
China using Chinese-language media.
The company provides sourcing
information to volume buyers and integrated marketing services to
suppliers. It helps a community of over 647,000 active buyers
source more profitably from complex overseas supply markets. With the goal
of providing the most effective ways possible to advertise, market and
sell, Global Sources enables suppliers to sell to hard-to-reach buyers in
over 230 countries.
The company offers the most
extensive range of media and export marketing services in the industries it
serves. It delivers information on 2 million products and more than 160,000
suppliers annually through 14 online marketplaces, 13 monthly magazines,
over 100 sourcing research reports and nine specialized trade shows which run 22 times a year across seven cities.
Suppliers receive more than 23
million sales leads annually from buyers through Global Sources Online
(http://www.globalsources.com) alone.
Global Sources has been
facilitating global trade for 36 years. In mainland China
it has over 2,000 team members in 44 locations, and a community of over 1
million registered online users and magazine readers for Chinese-language
media.
Safe Harbor Statement
This news release contains
forward-looking statements within the meaning of Section 27-A of the
Securities Act of 1933, as amended and Section 21-E of the Securities
Exchange Act of 1934, as amended. The company's actual results could differ
materially from those set forth in the forward-looking statements as a
result of the risks associated with the company's business, changes in
general economic conditions, and changes in the assumptions used in making
such forward-looking statements.
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