Cordlife says related China Cord Blood Corp gets acquisition proposal

SINGAPORE - Mainboard-listed Cordlife Group announced on Tuesday that China Cord Blood Corp (CCBC), in which it has a minority interest, has received a proposal letter from Golden Meditech on Monday seeking to take CCBC private.

Golden Meditech, another China-based company, is looking to acquire all the outstanding ordinary shares of umbilical cord blood banking operator CCBC that it does not own for US$6.40 per share in cash. In addition, it plans to acquire all of CCBC's 7 per cent senior convertible notes. Golden Meditech hopes to finance the deal with available cash as well as with debt and equity capital.

Cordlife Group has a stake of 9.13 per cent in CCBC, and is also a holder of a 7 per cent senior convertible note due Oct 3, 2017.

The Group's board of directors will form a special committee of independent directors to consider the proposed transaction.

CCBC added that it has not entered into an agreement with Golden Meditech and there is "no certainty" that any transaction will be entered into at this time.