China Cord Blood Corporation ("CCBC") had on 27 April 2015 announced (the "CCBC Announcement") that its board
of directors had received a non-binding proposal letter from Golden Meditech Holdings Limited ("Golden Meditech") pursuant to which Golden Meditech is proposing to acquire all of the
outstanding ordinary shares of CCBC not already directly or indirectly owned by Golden Meditech for US$6.40 per ordinary share in cash. It was stated in the CCBC Announcement that in connection with the transaction, Golden Meditech also intends to acquire all of the 7% senior convertible notes of
CCBC.
China Cord Blood Corp gets privatisation proposal from Golden Meditech Holdings Limited ("Golden Meditech") pursuant to which Golden Meditech is proposing to acquire all of the outstanding ordinary shares of CCBC not already directly or indirectly owned by Golden Meditech for US$6.40 per ordinary share in cash. At this price CCBC is value at US$512.57 millions.
Cordlife in November 2012 bought 10% indirect stake in NYSE- listed CCBC for US$20.8m. Cordlife 10% stake in CCBC is therefore value at US$51.257 millions.
After the news of privatisation offer CCBC share price fall from high of US$7.22 to US$6.71. The question now is whether Cordlife will accept the offer or will it prefer to ride on the CCBC business in China?
another sizzling development: ....As announced, the Board had decided to reject the Offer
after due and careful consideration. The Board wishes to announce that the Board has received a second offer for the Assets from the same third party on revised terms (the "Revised Offer"). The Board is presently reviewing the Revised Offer.
Will there be a new and higher offer for CORDLIFE soon? EGM is in 14 days time (ie, on Sept 14)
According to MayBank report: "We believe Cordlife can still benefit, either from a higher bid by GM or one of the parties making an offer for the whole of Cordlife to contest for its stake in CCBC. It is still able to walk away from the conditional sale of its stake in CCBC to GM without legal consequences if its shareholders block such a deal in an EGM. For Cordlife’s shareholders to reject GM however, there must be a much better competing offer. In our view, only a full GO for Cordlife itself will suffice.
Given the likely intensity of a bidding war for CCBC and Singapore’s high healthcare valuations, we think an offer for Cordlife needs to be at SGD1.62-2.09 to be taken seriously. It must also reach shareholders before the EGM is held, likely in Sep/Oct. "
