Cordlife: (S$1.28) All conditions met for CCBC's stake disposal
Cordlife has announced that all conditions have been met for its proposed stake disposal in China Cord Blood Corp (CCBC) to Golden Meditech (GM).
To recap, GM offered US$6.40/share to privatise CCBC earlier in May '15.
The deal is expected to unlock net cash inflow of $87.6m for Cordlife, comprising a $69.6m book gain.
With the cash, 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; or
3) Boost market share in India, Philippines and Indonesia via more distribution points.
Maybank-KE last estimated that Cordlife may pay up to $0.14/share in special dividends following the stake disposal.
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