Cordlife: Counter has been inching up this week, after Cordlife received a competing offer from a third party to buy its shares and convertible notes in China Cord Blood Corporation (CCBC).
Recall, CCBC is currently in the midst of a privatisation offer by Golden Meditech at US$6.40/share and convertible notes at US$7.00 each.
Upon completion, Cordlife will deleverage its balance sheet, leaving it with $90m, which the group intends to either:
1) Pay out a special dividend
2) Acquire new products
3) Boost market share in India, Philippines and Indonesia via more distribution points
This second unsolicited offer from the third party follows an earlier one in Jul, which Cordlife rejected. Cordlife is presently reviewing the terms of the offer, which is undisclosed.
Previously, Maybank-KE estimated that Cordlife may pay up to $0.14/share in special dividends and this may potentially be revised upwards if Cordlife accepts the latter bid.
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