Wednesday, October 7, 2015

BVI holding announces financial results for Q1 of fiscal 2016 and receives acquisition offer

BVI holding company Global-Tech Advanced Innovations Inc. reported its financial results for the first quarter of fiscal 2016. For the quarter period ended June 30, 2015, company’s net sales were US$15.3mln, as compared to US$24.6mln for the same period of fiscal 2015. Net loss announced by the company was US$1.0mln, or US$0.34 per share, as compared to net loss of US$0.3mln, or US$0.10 per share for the quarter ended June 30, 2014. The sales decreased primarily due to falling sales in commodity CCMs, by words of company’s President and Chief Executive Officer John C.K. Sham. However, he stated that average unit pricing improved “as a result of a more favorable product mix and our efforts to control production costs, leading to increases in profit margins.”

Also, Global-Tech announced the receipt of “Going Private” offer on August 3, 2015, from company’s President and CEO and some of his affiliated entities - an unsolicited preliminary non-binding proposal letter, proposing to acquire all of the outstanding common shares of the company not already beneficially owned by them, for US$8.75 per share. It is planned to form an acquisition company for implementing the offer, which will be financed with cash and debt. Following the proposal, the Board formed a special committee of independent directors to consider the offer.