Cordlife: Has conditionally accepted Golden Meditech’s (GM) offer to buy its China Cord Blood Corporation (CCBC) shares and convertible notes for US$6.40/share and US$7.00/note.
The acceptance still allows for upside from:
1) Any dividend distribution by CCBC before sale completion; and
2) Any higher offer price from GM to CCBC shareholders.
Upon completion, Cordlife will receive $146.5m in cash and book a gain of $58m.
Assuming Cordlife keeps $50m for expansion, Maybank-KE estimates that it could pay a special dividend of up to $0.14/share from the remaining proceeds.
The house also expects Cordlife to include fair-value gains from CCBC for its upcoming 3QFYJun15 results, which closed 8.4% above its cost of US$5.00/share.
Maybank-KE maintains Buy, but reduced its TP to $1.56 from $1.62.
No comments:
Post a Comment