Cogo sells 30% of assets to founder


Cogo's (COGO +6%) Audit Committee has signed an agreement to sell 30.4% of the company's assets to founder and CEO Jeffrey Kang for $80M. The transaction is expected to close before the end of the year.

The pieces in question generated 98.7% of Q1 revenue. The market appears skeptical, with the stock trading at a market cap of ~64M.

Previous: Cogo +14% premarket after CEO says asset acquisition going well

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Comments (2)
  • wigit5
    , contributor
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    So whats left over only produces 1.3% of Q1 revenue? Sounds sound
    23 Sep 2013, 01:59 PM Reply Like
  • Investor718
    , contributor
    Comments (82) | Send Message
     
    wigit5,

     

    i am with you and don't see how this is benefiting shareholders. Kang is buying the profitable portion of the company? what is then left for the company? how is this good news? can someone explain this to me?
    24 Sep 2013, 03:56 AM Reply Like
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