Cordlife Group made a non-binding proposal to take over New York Stock Exchange-listed Global Cord Blood in an all-share deal, the Singapore cord-blood banking company said in a filing to SGX Tuesday.
Under the proposed deal, Cordlife would issue 2.50 billion shares with a value of S$1.25 billion, based on an issue price of S$0.50 each, in exchange for all of Global Cord Blood, the filing said. That would work out to US$7.50 per Global Cord Blood share, it added.
The transaction would be via a newly formed, wholly owned subsidiary of Cordlife, with Global Cord Blood surviving as a wholly owned subsidiary, the filing said.
Global Cord Blood would be taken private and delisted from the NYSE, it added.
The proposed deal is subject to a definitive agreement, as well as due diligence by both companies and approval by their shareholders, Cordlife said.
“The company notes that discussions between the parties concerning the proposed transaction are at an early stage,” Cordlife said. “There is no certainty that the proposed transaction will proceed.”
Cordlife shares ended Tuesday at S$0.46, up 3.33 percent; Global Cord Blood shares were up 5.41 percent at US$6.63 at 12:00 P.M. EDT Tuesday.
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