The Wall Street Journal
Cogo Group Inc. said Chairman and Chief Executive Jeffrey Kang has offered to acquire more than 30% of the company’s assets for $80 million, a move that comes after he bought a substantial portion of Cogo’s assets last year.
The China-based company, which provides design services for semiconductor companies, said Mr. Kang has proposed to purchase the assets through a company he wholly owns, Brilliant Group Global Ltd. These assets generated nearly 99% of the company’s revenue and 67% of its gross profits as of the first quarter.
The net asset value of Cogo shares is expected to be more than $6 a share upon completion of the proposed sale, nearly triple the company’s Friday closing price.
Mr. Kang said the proposed deal will help the company “evolve into a light asset, service revenue oriented business.” He added the company has no intention to dissolve or go private.