Cogo Announces Continued Progress on Proposed Asset Purchase by CEO and Chairman
SHENZHEN, China, June 29, 2012 /PRNewswire/ -- Cogo Group, Inc. (NASDAQ: COGO) ("Cogo" or the "Company"), one of the leading gateways for global semiconductor companies to access the industrial and technology markets in China, today announced that the proposal by its CEO and Chairman, Jeffrey Kang, to purchase approximately 30% of the Company's total assets, liabilities and business operations continues to progress, although it is taking longer than originally anticipated. The Audit Committee, consisting of the three independent Board Members of Cogo, is actively negotiating the agreements that they believe will be in the best interests of Cogo and the Company's public shareholders. The Company is not providing an anticipated closing date for the deal at this time.
Jeffrey Kang, CEO and Chairman of Cogo said, "The Audit Committee continues to make progress towards my proposed purchase of approximately 30% of Cogo's assets, liabilities and business operations. I continue to believe that this deal, which values Cogo at $6.00-$8.00 per share, is the most efficient way to unlock value for shareholders and will help to demonstrate the legitimacy of the company's financial assets. At the end of the first quarter of 2012, Cogo's tangible book value was $6.44 a share, which is nearly four times the Closing price of Cogo's common stock on June 28, 2012."
Mr. Kang continued, "While the macro conditions in China are still challenging and credit conditions for our Small and Medium Enterprise customers remain tight, we continue to execute well. I expect that our tangible book value will continue to rise over time and I remain committed to returning value to our shareholders."
About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq: COGO) is one of the leading gateways for global semiconductor companies to access the rapidly growing Industrial and Technology sectors in China. Through its unique business-to-business services platform, Cogo designs customized embedded solutions using technology from suppliers including Intel, Broadcom, Xilinx, SanDisk, Freescale, Atmel and others for a customer base of over 1,800 Chinese OEMs/ODMs. Cogo's customer list includes approximately 100 blue-chip companies, including ZTE, BYD and NARI, as well as over 1,700 Small and Medium Enterprises (SMEs). The Company serves a broad list of rapidly growing end-markets in China, including 3G Smart phones, Tablets, Automotives, High-Speed Railway, Smart Meter/Smart Grid, Healthcare and High Definition Television ("HDTV").
Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business or our potential asset sale transaction, which are subject to change. Such information is based upon expectations of our management that were reasonable when made, but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.
SOURCE Cogo Group, Inc.
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