Cogo Signs Sale and Purchase Agreement for Chairman and CEO Jeffrey Kang to Acquire 30.4% of Cogo Net Assets
SHENZHEN, China, Sept. 23, 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 Company's Audit Committee, assigned to oversee the negotiation of the transaction by the Board of Directors, has signed a Sale and Purchase Agreement to sell just over 30% of its assets to its founder, CEO and Chairman, Jeffrey Kang, for a purchase price of $80 million. The transaction is expected to close before the end of 2013.
At the NASDAQ close on September 20, 2013, Cogo's share price was at $2.18. The Company expects to continue purchasing its ordinary shares pursuant to a 10b5-1 plan during the upcoming blackout period.
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.