Cordlife: disclosed that an unsolicited offer for its 13.4% stake, comprising shares and convertible bonds, in China Cord Blood Corporation (CCBC) has been withdrawn with immediate effect.
The US$8.00/share offer from Hong Kong-based Robust Plan was pulled due to the company's change of position following a competing bid from Nanjing Xinjiekou Department Store for CCBC's China business, which will make its minority acquisition of CCBC commercially irrelevant.
Nonetheless, Cordlife remains in a favourable position given its pivotal stake in CCBC amid the ongoing bidding war.
Investors will be watching the key period between now and the upcoming EGM on 14 Sep to see if there is a formal counter-offer for CCBC before Cordlife's shareholders vote on the group' proposed stake disposal in CCBC to Golden Meditech at US$6.40/share.
At the current price, Cordlife is valued at 30.8x FY16 earnings, compared to its five-year average of 22.5x.
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