Cordlife

Cordlife: Announced that it will be buying 10% of China Cord Blood Corporation's (CCBC) total issued share capital for US$20.8m. At the same time, Cordlife will also be selling its 10% interest in China Stem Cells (CSCS), an indirect subsidiary of CCBC, through a repurchase of shares by CSCS, for US$16.8m. Cordlife expects to record a gain of $4.7m from the disposal. Proceeds from the disposal and US$4.0m from its IPO net proceeds will be used to offset its purchase consideration for CCBC shares, which represents a 10x P/E. Aside from mutual benefits derived from strategic tie-up with CCBC, including expansion opportunities for our businesses, the transactions are accretive, said Grp. The transactions also allow Cordlife to exchange its equity stake in private company CSCS for ordinary shares in CCBC, which can be publicly traded on the NYSE, subject to approval, and increases liquidity of its investments and portfolio.