COGO - Founder/CEO buying 30% of assets for $80M. Current mkt cap (for 100% of assets) at $65m. Could have substantial upside if mkt revalues the company based on this purchase.
plus, company reaffirms intent to continue share repurchase.
SHENZHEN, China, Sept. 23, 2013 /PRNewswire/ -- Cogo Group, Inc. ("Cogo," or the "Company") (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.
Solid DD combined with timeliness and conviction is a recipe for profits.
