Cogo Signs Letter of Intent for Chairman and CEO Jeffrey Kang to Acquire 30.4% of Cogo Net Assets
SHENZHEN, China, Sept. 9, 2013 /PRNewswire/ -- Cogo Group, Inc. ("Cogo," or the "Company") (NASDAQ: COGO) a leading gateway for global semiconductor companies to access the industrial and technology markets in China, announced today that the transaction to sell just over than 30% of its assets (which generated 98.7% of its revenues of its revenues in Q1 2013) to its founder, CEO and Chairman, Jeffrey Kang, is progressing smoothly since it was announced on July 15.
The Company's Audit Committee, assigned to oversee the negotiation by the Board of Directors, has signed a letter of intent relating to the sale with Mr. Kang's wholly owned company. The letter of intent calls for a purchase price of $80 million. Mr. Kang has proposed that the transaction close before the end of 2013.
At the NASDAQ close on September 6, 2013, Cogo's share price was $2.09 a share. Mr. Kang said, "We will continue to repurchase stocks and another 10b5-1 plan will be set up to allow us to buy during the blackout period from September 25, 2013."
Mr. Kang reiterated an earlier statement that there is no intention for the Company to go private; it intends to retain its listed status.
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 growth strategy such as growth in new business initiatives or potential disposals and acquisitions, all of 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.
About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq: COGO) is the leading gateway 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 Broadcom, Xilinx, Atmel and others for a customer base of over 2,100 Chinese OEMs/ODMs. Cogo's customer list includes approximately 100 blue-chip companies, including ZTE, BYD and NARI, as well as nearly 2,000 Small and Medium Enterprises (SMEs). The Company serves a broad list of rapidly growing end-markets in China, including 3G Smartphones, Tablets, Automotives, High-Speed Railway, Smart Meter/Smart Grid, Healthcare and High Definition Television "HDTV."
SOURCE Cogo Group, Inc.