Impact of Cordlife’s extended suspension being closely monitored: Nanjing Xinjiekou
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The share price for Cordlife was 14 cents at market close on June 25.
PHOTO: LIANHE ZAOBAO FILE
Michelle Zhu
SINGAPORE - Private cord blood bank Cordlife Group has received a fifth letter from SAC Capital on behalf of Nanjing Xinjiekou on the substantial shareholder’s offer to buy over Cordlife’s remaining shares.
SAC stated on June 25 that developments relating to the company have been and will continue to be closely monitored, particularly in view of the Ministry of Health’s (MOH) latest directive to extend Cordlife’s suspension by up to three months from June 15.
SAC said it “has been and will continue to closely monitor and assess developments” relating to the extended suspension.
This includes any further potential financial impact of the extended suspension for the current financial year – and the company’s progress in obtaining MOH’s approval to “resume operations as soon as possible”.
As at the fifth letter dated June 24, Nanjing Xinjiekou is still considering making a potential offer for Cordlife’s remaining shares.
SAC said it was “furthering the discussions” with Nanjing Xinjiekou on the potential offer’s terms.
It added that nothing in the letter should be construed as a firm intention to make an offer for the company.
Cordlife received its first letter from SAC on behalf of Nanjing Xinjiekou regarding the potential offer on Feb 23, stating that the latter was mulling over making an offer for shares it did not already own.
Since then, Nanjing Xinjiekou and another substantial shareholder, TransGlobal Real Estate Group, have been requisitioning to remove certain directors from the board of Cordlife.
Their respective views – on how the new board composition should be and how Cordlife’s issues should be addressed – have served as points of contention between the two substantial shareholders up until the company’s financial year 2023 annual general meeting, held on May 14.
At the meeting, over 60 per cent whose shares were represented voted to remove three directors, including Cordlife co-founder Ho Choon Hou, from its board, with three directors proposed by Nanjing Xinjiekou to be elected.
The share price for Cordlife was 14 cents at market close on June 25. THE BUSINESS TIMES
