Cogo Announces Continued Progress on Proposed Asset Purchase by CEO and Chairman
Cogo Group, Inc. (NASDAQ: COGO) 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."
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