Chinese techy firm leaves Maryland for Cayman

(CNS): Cogo Group, Inc. a leading gateway for global semiconductor companies to access the industrial and technology markets in China, has announced that its Board of Directors has unanimously approved the redomestication of the Company from the State of Maryland to the Cayman Islands. A wholly owned indirect subsidiary of the Company, Cogo Group Cayman, Inc. ("Cogo Cayman"), has filed a registration statement on Form F-4 relating to the redomestication transaction and future stockholder meeting. It is the Board’s belief that the redomestication will make Cogo’s shares more attractive to non-U.S. investors and ultimately broaden its shareholder base, the firm said in a statement.

The redomestication would allow the Company to dual-list its shares on the Hong Kong Stock Exchange but it does not mandate that the dual-listing will occur. Following a successful redomestication, if the Company chooses to initiate the dual-listing process for the Hong Kong Stock Exchange, it would take an estimated three to six months to complete.

"One of the main fiduciary responsibilities of Cogo’s Board of Directors is to maximize value for our shareholders,” Jeffrey Kang, CEO of Cogo, said. “We believe that by changing our domicile to the Cayman Islands, which will allow the flexibility to dual-list our shares on the Hong Kong Stock Exchange, if we choose to do so, will help broaden our shareholder base to non-U.S. investors. We expect to be able to achieve this result with no material tax changes and limited costs relative to the potential improvement in shareholder value and a broadened shareholder base."