Reuters: Global Markets: Cogo beats, says CEO to buy about 30 percent of company

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Cogo beats, says CEO to buy about 30 percent of company Mar 15th 2012, 21:58 Thu Mar 15, 2012 5:58pm EDT (Reuters) - Cogo Group Inc (COGO.O) reported quarterly results above Wall Street estimates and the computer components distributor based in China said its Chief Executive Jeffrey Kang proposed to buy about a third of the company's shares. The company's stock which has lost almost three-fourths of its value in the last one year, soared to $3.54 in after-hours trade. They had closed at $1.94 on Thursday on the Nasdaq. Cogo, which distributes components made by Intel, Broadcom, Xilink and others to customers in China, posted a fourth-quarter net loss of $35.8 million, or 99 cents a share, compared with a net income of $4.6 million, or 12 cents a share, a year ago. Before items, the Shenzen-based company made a profit of 13 cents a share, beating analysts' estimates by one cent, according to Thomson Reuters I/B/E/S. Revenue rose 49 percent to $169.5 million, against analysts' view of $147.48 million. Separately, the company said Chairman and CEO Jeffrey Kang proposed to acquire a series of operating entities of Cogo, which account for about 30 percent of its total assets, for $60 million to $82 million. The offer implies a valuation of $6 to $8 per share and Cogo will use the proceeds to buy back shares, said the company, which competes with Arrow Electronics (ARW.N) and Avnet (AVT.N). The deal -- expected to close in the second quarter of 2012 -- will be made through Kang's personal investment venture Envision Global Group, Cogo said in a statement. (Reporting by Siddharth Cavale in Bangalore; Editing by Joyjeet Das) Link this Share this Digg this Email Reprints

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