Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On the 4 June 2019, <a href="https://www.smartkarma.com/entities/cordlife-group-ltd" target="_blank" data-smartkarma-citation="entities:568:1" rel="noopener">Cordlife (CLGL SP)</a> <a href="https://links.sgx.com/FileOpen/CGL%20SGX%20-%20Announcement%20of%20Indicative%20Non-Binding%20Proposal.ashx?App=Announcement&amp;FileID=562493" target="_blank" rel="noopener">announced</a> a non-binding proposal for <a href="https://www.smartkarma.com/entities/global-cord-blood-corp" target="_blank" data-smartkarma-citation="entities:689:1" rel="noopener">Global Cord Blood (CO US)</a> (GCB), via the issuance of 2.497bn shares worth S$1.248bn or an indicative Offer Price of US$7.50/share. The transaction was subject to the entry into a definitive transaction documentation, including a merger agreement following satisfactory completion of business, financial, legal, and other due diligence.
Some 18 months later, Cordlife announced the <a href="https://links.sgx.com/FileOpen/CGL_SGX_Termination_of_discussion_Indicative_Non-Binding_Proposal.ashx?App=Announcement&amp;FileID=648215" target="_blank" rel="noopener">termination</a> of the proposal.
<h3>The NEW News</h3>
On the 2 March, less than a month after Cordlife walked away, GCB <a href="https://ir.globalcordbloodcorp.com/static-files/f8b2aceb-b2fb-4de7-b9ea-5e466584ceda" target="_blank" rel="noopener">announced</a> the receipt of a non-binding acquisition proposal from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/haitong-international-securities-group-ltd" target="_blank" data-smartkarma-citation="entities:13153:1" rel="noopener">Haitong International Securities Group (665 HK)</a>. The consideration under the proposal is US$5/share.
Yesterday GCB <a href="https://ir.globalcordbloodcorp.com/static-files/57848e55-d492-4a0b-8eee-03e431935b68" target="_blank" rel="noopener">announced</a> the formation of a special committee to evaluate the proposal.
More below the fold.

On the 4 June 2019, Cordlife (CLGL SP) announced a non-binding proposal for Global Cord Blood (CO US) (GCB), via the issuance of 2.497bn shares worth S$1.248bn or an indicative Offer Price of US$7.50/share. The transaction was subject to the entry into a definitive transaction documentation, including a merger agreement following satisfactory completion of business, financial, legal, and other due diligence.
Some 18 months later, Cordlife announced the termination of the proposal.
The NEW News
On the 2 March, less than a month after Cordlife walked away, GCB announced the receipt of a non-binding acquisition proposal from a wholly-owned subsidiary of Haitong International Securities Group (665 HK). The consideration under the proposal is US$5/share.
Yesterday GCB announced the formation of a special committee to evaluate the proposal.
More below the fold.

Global Cord Blood: Haitong Raids The Bank

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

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 <div class='content-caption'>Cordlife-CEO</div>
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Growing up with asthma, hospitals and emergency waiting rooms were familiar territory for healthcare industry veteran Tan Poh Lan. 
“I was horribly asthmatic as a kid, and spent time in hospitals whenever I suffered an attack,” recalled the Group Chief Executive Officer of SGX-listed cord blood banking services company Cordlife Group Ltd. “And because I loved the sciences, particularly biology, I wanted to build a career in healthcare.” 
In 1985, Tan graduated with Honours in Occupational Therapy from Australia’s University of Queensland. She began her career as an occupational therapist with Singapore General Hospital a year later. 
“As an occupational therapist, interacting daily with patients who suffered from trauma or disabilities, I learnt to deal with challenges head-on and look for alternative solutions,” she said. “For example, how do you help a handicapped client to cope with daily tasks and routines? There’s always a way, we just have to find it.” 
It helps that Tan is an eternal optimist, steeped in pragmatism. “I was brought up to be a practical person,” she said. 
“My mum has this favourite Cantonese proverb – 马死落地行 (ma si luo di xing), which means if the horse you’re riding drops dead, just get down and walk. In other words, find another way.” 
And it is this indomitable spirit that defines Tan through her three decade-long career in the private and public healthcare sectors, both in Singapore and the region. 
She joined Mount Elizabeth Hospital in 1991 as a Marketing Executive and rose through the ranks to the position of CEO in 2007.  Between 2007 and 2015, she held CEO roles in other local and regional hospitals, including Parkway East Hospital – formerly East Shore Hospital, and Gleneagles Hospital in Singapore, as well as Vinmec International Hospital in Hanoi, Vietnam, and Fortis Healthcare Singapore. 
Tan, who also holds a Master of Business Administration from the National University of Singapore, was appointed Group Chief Operating Officer of Cordlife in 2016. She was promoted to Group CEO three years later. 
Incorporated in 2001 and listed on SGX Mainboard since 2012, Cordlife is a pioneer in private cord blood banking in Asia. It owns the largest network of cord blood banks in the region, with full stem cell banking facilities in the six key markets of Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines. Through marketing agents, Cordlife extended its presence to Myanmar and Vietnam in 2017, and Bangladesh in 2019. Market Leadership 
Cordlife operates the largest private cord blood banks in Singapore, the Philippines and Indonesia, and is amongst the top three market leaders in India and Malaysia. The Group became the market leader in Hong Kong via the acquisition of Healthbaby Biotech in 2018. Through a Malaysian subsidiary, it also holds an indirect stake in Thailand’s largest private cord blood bank, Thai Stemlife. 
Beyond cord blood and cord lining banking, Cordlife offers a comprehensive suite of diagnostic services for the family, including urine-based newborn metabolic screening, non-invasive prenatal testing, paediatric vision screening and family genetic screening services. 
All the Group’s facilities are accredited by the American Association of Blood Banks (AABB), the organisation behind the world’s gold standard for cord blood banking. In addition, Cordlife Singapore and Healthbaby Hong Kong are also two of four cord blood banks in Asia, and 10 in the world, to be accredited by both AABB and FACT, which is another world-class accreditation body for cord blood banks. 
In the area of clinical diagnostics, Cordlife India, Cordlife Hong Kong and Healthbaby are also accredited by the College of American Pathologists (CAP). 
When Tan joined Cordlife, she made it a priority to streamline the Group’s operations. “I believe in first things first, which was to optimise the corporate structure,” she said. 
 “We brought some previously outsourced functions back into the Group, and facilitated collaboration amongst the different markets, all of which have led to significant cost savings,” she noted. “So, over the past year, although the top line hasn’t grown as much as we would like, our bottom line has improved.” 
For the six months ended 30 June 2020, net profit jumped 50.2% year-on-year to S$2.63 million, even as revenue declined 12.7% to S$26.2 million. Net profit margin edged up 4.2 percentage points to 10.0%. 
But cost-cutting only goes so far, she admitted. “Prudent expense management is not enough – we need to boost revenues as well.” 
As a result, the Group has been ramping up new revenue channels, including its diagnostics and digital healthcare business segments, to complement its core operations. 
“Stem cell therapeutics are subject to regulatory oversight in each operating country. We welcome government efforts to set ethical guidelines that will allow our industry to progress cautiously and responsibly, as well as to grow in a healthy manner,” Tan noted. 
Cordlife has observed an encouraging trend of better alignment of regulations and guidance for stem cell therapeutics globally. As interest in stem cell therapy intensifies, its banking business will be a primary beneficiary, especially in the domain of cellular therapies and regenerative medicine. 
“Our various country heads are proactively working to develop an ecosystem with doctors and hospitals in their respective countries to encourage utilisation of stem cells,” she added. “This includes pre-clinical and clinical studies using such cells.” 
The results from Cordlife’s diagnostics services segment have also been encouraging. Revenue contribution from this segment jumped 68% to S$1.6 million in FY2019 from S$0.9 million the previous year. “Diagnostics is a growth engine for all our markets and is expected to drive our business forward.” Middle-Class Market 
Generating and boosting awareness of the potential of cord blood, cord tissue, as well as cord lining banking is another focus, Tan noted. 
Cord blood banking involves the collection at birth, processing, testing, cryopreservation and storage of stem cells from umbilical cord blood. Cord tissue and cord lining banking refer to the collection, processing, testing, cryopreservation and storage of the umbilical cord tissue or lining. The process for cord lining banking uses patented technology from Singapore-based stem cell technology firm CellResearch Corporation via an exclusive license. 
Currently, penetration rates in Malaysia, India, the Philippines, Indonesia, Vietnam, Myanmar and Bangladesh remain relatively low - at single digits compared to Singapore’s double-digit rates. 
“But we believe there is huge potential for growth in these countries as healthcare spending by the progressive middle and affluent classes is on the rise,” she added. “Once you’re able to capture the attention of mothers-to-be, it’s easier to get their buy-in - it’s usually the women who make healthcare decisions for the family.” 
Cordlife is also in the midst of developing its mobile application, Moms Up, which provides health information and resources to help Asian women who plan to conceive or are expecting, as well as mothers with young children. It targets to roll out the app to all its markets by year-end. 
“Leveraging on this digital platform, we intend to expand our reach to potential clients and increase touchpoints with existing customers,” she said. “It also serves as a base for us to educate and increase awareness of our services.” 
Apart from driving organic growth, Cordlife is also seeking acquisitions to further strengthen its market position, and expand its footprint beyond its current 10 markets in Asia. 
“We will review any horizontal integration opportunities to add to the Group’s revenue and earnings growth,” Tan added. “These targets will be synergistic to our existing businesses and provide a competitive edge over other market players.” 
In particular, China is one market it has been exploring, with the abolishment of the country’s one-child policy highlighting potential opportunities in its cord blood banking industry. 
“In recent years, China has made remarkable advancements in stem cell therapies, bringing fresh insight to regenerative medicines. The strong government support and investment in stem cell research bodes well for our strategy of building the ecosystem of utilisation.” 
Last June, Cordlife made an indicative, non-binding proposal for a statutory merger with Global Cord Blood Corporation, the first and largest cord blood bank in China. Negotiations are still in the preliminary stage, she added. Digitalisation Drive 
In the meantime, the 58-year-old has her hands full managing the fallout from the coronavirus pandemic. “COVID-19 has affected demand for the Group’s banking services and tightened consumer spending, resulting in lower client acquisitions,” she admitted. 
“With some of our key geographical markets facing recurring waves of the outbreak, we expect to face continued uncertainties from COVID-19 in the coming months.” 
With social distancing measures and border controls restricting Cordlife’s ability to carry out physical promotional activities or deliver services, the Group has embarked on digital initiatives, including online consultations, webinars and e-enrolment to engage potential clients. 
“To capture potential business opportunities, we continue to ramp up our digital marketing campaigns, which have allowed us to reach out to a larger audience,” she added. 
Other roadblocks include declining or stagnating birth rates in Cordlife’s target market segments. “It’s a known trend that middle to upper class professionals living in cities are having fewer babies,” Tan said. 
“The good news, however, is that each child becomes very precious, and as these parents get more affluent, they have higher disposable incomes to invest in their children. With a wider suite of services, including diagnostics, we’re able to offer bundling of services and products.” 
External challenges aside, Tan also worries about developing a deep talent bench within Cordlife. 
“Organisational success is often linked to an inspiring vision, a clear mission and strong values. But do I have the right people? Do I have enough of the right people - not just for Singapore, but also for our other markets?” 
And in an increasingly interconnected and digital environment, cybersecurity is another issue that looms large. “The growing risks and threats to IT security cannot be ignored. COVID has fast-forwarded our move online, and we need to ensure the safety, security and confidentiality of all our client data.” 
Despite these day-to-day concerns, Tan retains her sunny optimism. “I choose to believe that there’s always a way out, and a solution can be found for every problem we face.” 
Not surprisingly, her greatest inspiration is making a positive impact on the people who cross her path. “You can always learn something from each person you come into contact with, no matter how big or small.” 
“This is what energises me, and keeps me going every day.” Cordlife Group Ltd 
Cordlife listed on the Mainboard of Singapore Exchange in 2012, and is a pioneer in private cord blood banking in Asia. Established in May 2001, it currently owns the largest network of cord blood banks in Asia, with full stem cell banking facilities in six key markets, namely Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines. Cordlife operates the largest private cord blood banks in Singapore, the Philippines and Indonesia, and is amongst the top three market leaders in India and Malaysia. In January 2018, Cordlife became the market leader in Hong Kong with the acquisition of the largest private cord blood bank in the country, Healthbaby Biotech. Through its majority-owned subsidiary in Malaysia, Stemlife Bhd, Cordlife holds an indirect stake in Thailand’s largest private cord blood bank, Thai Stemlife. Through marketing agents, Cordlife also expanded its presence to Myanmar and Vietnam in 2017, as well as Bangladesh in 2019. Beyond cord blood and cord lining banking, Cordlife offers a comprehensive suite of diagnostics services for the family, including urine-based newborn metabolic screening, non-invasive prenatal testing, paediatric vision screening and family genetic screening services.

 

The company website is: <a href="http://www.cordlife.com">www.cordlife.com</a> 
Click <a href="https://www.sgx.com/securities/equities/P8A">here</a> for the company's StockFacts page. 
For the half year ended 30 June 2020 financial results, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/UTPFBZMUTT9G631W/Cordlife_1H2020_Press_Release.pdf">here</a>. 
 

About kopi-C: the Company brew

Text: Jennifer LH Tan Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="http://edm.sgx.com/a/hBd-CspB86%24MfB90noBAABR54ZH/link10">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
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    Cordlife-CEO


Growing up with asthma, hospitals and emergency waiting rooms were familiar territory for healthcare industry veteran Tan Poh Lan.  
“I was horribly asthmatic as a kid, and spent time in hospitals whenever I suffered an attack,” recalled the Group Chief Executive Officer of SGX-listed cord blood banking services company Cordlife Group Ltd. “And because I loved the sciences, particularly biology, I wanted to build a career in healthcare.”  
In 1985, Tan graduated with Honours in Occupational Therapy from Australia’s University of Queensland. She began her career as an occupational therapist with Singapore General Hospital a year later.  
“As an occupational therapist, interacting daily with patients who suffered from trauma or disabilities, I learnt to deal with challenges head-on and look for alternative solutions,” she said. “For example, how do you help a handicapped client to cope with daily tasks and routines? There’s always a way, we just have to find it.”  
It helps that Tan is an eternal optimist, steeped in pragmatism. “I was brought up to be a practical person,” she said.  
“My mum has this favourite Cantonese proverb – 马死落地行 (ma si luo di xing), which means if the horse you’re riding drops dead, just get down and walk. In other words, find another way.”  
And it is this indomitable spirit that defines Tan through her three decade-long career in the private and public healthcare sectors, both in Singapore and the region.  
She joined Mount Elizabeth Hospital in 1991 as a Marketing Executive and rose through the ranks to the position of CEO in 2007.  Between 2007 and 2015, she held CEO roles in other local and regional hospitals, including Parkway East Hospital – formerly East Shore Hospital, and Gleneagles Hospital in Singapore, as well as Vinmec International Hospital in Hanoi, Vietnam, and Fortis Healthcare Singapore.  
Tan, who also holds a Master of Business Administration from the National University of Singapore, was appointed Group Chief Operating Officer of Cordlife in 2016. She was promoted to Group CEO three years later.  
Incorporated in 2001 and listed on SGX Mainboard since 2012, Cordlife is a pioneer in private cord blood banking in Asia. It owns the largest network of cord blood banks in the region, with full stem cell banking facilities in the six key markets of Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines. Through marketing agents, Cordlife extended its presence to Myanmar and Vietnam in 2017, and Bangladesh in 2019.  Market Leadership  
Cordlife operates the largest private cord blood banks in Singapore, the Philippines and Indonesia, and is amongst the top three market leaders in India and Malaysia. The Group became the market leader in Hong Kong via the acquisition of Healthbaby Biotech in 2018. Through a Malaysian subsidiary, it also holds an indirect stake in Thailand’s largest private cord blood bank, Thai Stemlife.  
Beyond cord blood and cord lining banking, Cordlife offers a comprehensive suite of diagnostic services for the family, including urine-based newborn metabolic screening, non-invasive prenatal testing, paediatric vision screening and family genetic screening services.  
All the Group’s facilities are accredited by the American Association of Blood Banks (AABB), the organisation behind the world’s gold standard for cord blood banking. In addition, Cordlife Singapore and Healthbaby Hong Kong are also two of four cord blood banks in Asia, and 10 in the world, to be accredited by both AABB and FACT, which is another world-class accreditation body for cord blood banks.  
In the area of clinical diagnostics, Cordlife India, Cordlife Hong Kong and Healthbaby are also accredited by the College of American Pathologists (CAP).  
When Tan joined Cordlife, she made it a priority to streamline the Group’s operations. “I believe in first things first, which was to optimise the corporate structure,” she said.  
 “We brought some previously outsourced functions back into the Group, and facilitated collaboration amongst the different markets, all of which have led to significant cost savings,” she noted. “So, over the past year, although the top line hasn’t grown as much as we would like, our bottom line has improved.”  
For the six months ended 30 June 2020, net profit jumped 50.2% year-on-year to S$2.63 million, even as revenue declined 12.7% to S$26.2 million. Net profit margin edged up 4.2 percentage points to 10.0%.  
But cost-cutting only goes so far, she admitted. “Prudent expense management is not enough – we need to boost revenues as well.”  
As a result, the Group has been ramping up new revenue channels, including its diagnostics and digital healthcare business segments, to complement its core operations.  
“Stem cell therapeutics are subject to regulatory oversight in each operating country. We welcome government efforts to set ethical guidelines that will allow our industry to progress cautiously and responsibly, as well as to grow in a healthy manner,” Tan noted.  
Cordlife has observed an encouraging trend of better alignment of regulations and guidance for stem cell therapeutics globally. As interest in stem cell therapy intensifies, its banking business will be a primary beneficiary, especially in the domain of cellular therapies and regenerative medicine.  
“Our various country heads are proactively working to develop an ecosystem with doctors and hospitals in their respective countries to encourage utilisation of stem cells,” she added. “This includes pre-clinical and clinical studies using such cells.”  
The results from Cordlife’s diagnostics services segment have also been encouraging. Revenue contribution from this segment jumped 68% to S$1.6 million in FY2019 from S$0.9 million the previous year. “Diagnostics is a growth engine for all our markets and is expected to drive our business forward.”  Middle-Class Market  
Generating and boosting awareness of the potential of cord blood, cord tissue, as well as cord lining banking is another focus, Tan noted.  
Cord blood banking involves the collection at birth, processing, testing, cryopreservation and storage of stem cells from umbilical cord blood. Cord tissue and cord lining banking refer to the collection, processing, testing, cryopreservation and storage of the umbilical cord tissue or lining. The process for cord lining banking uses patented technology from Singapore-based stem cell technology firm CellResearch Corporation via an exclusive license.  
Currently, penetration rates in Malaysia, India, the Philippines, Indonesia, Vietnam, Myanmar and Bangladesh remain relatively low - at single digits compared to Singapore’s double-digit rates.  
“But we believe there is huge potential for growth in these countries as healthcare spending by the progressive middle and affluent classes is on the rise,” she added. “Once you’re able to capture the attention of mothers-to-be, it’s easier to get their buy-in - it’s usually the women who make healthcare decisions for the family.”  
Cordlife is also in the midst of developing its mobile application, Moms Up, which provides health information and resources to help Asian women who plan to conceive or are expecting, as well as mothers with young children. It targets to roll out the app to all its markets by year-end.  
“Leveraging on this digital platform, we intend to expand our reach to potential clients and increase touchpoints with existing customers,” she said. “It also serves as a base for us to educate and increase awareness of our services.”  
Apart from driving organic growth, Cordlife is also seeking acquisitions to further strengthen its market position, and expand its footprint beyond its current 10 markets in Asia.  
“We will review any horizontal integration opportunities to add to the Group’s revenue and earnings growth,” Tan added. “These targets will be synergistic to our existing businesses and provide a competitive edge over other market players.”  
In particular, China is one market it has been exploring, with the abolishment of the country’s one-child policy highlighting potential opportunities in its cord blood banking industry.  
“In recent years, China has made remarkable advancements in stem cell therapies, bringing fresh insight to regenerative medicines. The strong government support and investment in stem cell research bodes well for our strategy of building the ecosystem of utilisation.”  
Last June, Cordlife made an indicative, non-binding proposal for a statutory merger with Global Cord Blood Corporation, the first and largest cord blood bank in China. Negotiations are still in the preliminary stage, she added.  Digitalisation Drive  
In the meantime, the 58-year-old has her hands full managing the fallout from the coronavirus pandemic. “COVID-19 has affected demand for the Group’s banking services and tightened consumer spending, resulting in lower client acquisitions,” she admitted.  
“With some of our key geographical markets facing recurring waves of the outbreak, we expect to face continued uncertainties from COVID-19 in the coming months.”  
With social distancing measures and border controls restricting Cordlife’s ability to carry out physical promotional activities or deliver services, the Group has embarked on digital initiatives, including online consultations, webinars and e-enrolment to engage potential clients.  
“To capture potential business opportunities, we continue to ramp up our digital marketing campaigns, which have allowed us to reach out to a larger audience,” she added.  
Other roadblocks include declining or stagnating birth rates in Cordlife’s target market segments. “It’s a known trend that middle to upper class professionals living in cities are having fewer babies,” Tan said.  
“The good news, however, is that each child becomes very precious, and as these parents get more affluent, they have higher disposable incomes to invest in their children. With a wider suite of services, including diagnostics, we’re able to offer bundling of services and products.”  
External challenges aside, Tan also worries about developing a deep talent bench within Cordlife.  
“Organisational success is often linked to an inspiring vision, a clear mission and strong values. But do I have the right people? Do I have enough of the right people - not just for Singapore, but also for our other markets?”  
And in an increasingly interconnected and digital environment, cybersecurity is another issue that looms large. “The growing risks and threats to IT security cannot be ignored. COVID has fast-forwarded our move online, and we need to ensure the safety, security and confidentiality of all our client data.”  
Despite these day-to-day concerns, Tan retains her sunny optimism. “I choose to believe that there’s always a way out, and a solution can be found for every problem we face.”  
Not surprisingly, her greatest inspiration is making a positive impact on the people who cross her path. “You can always learn something from each person you come into contact with, no matter how big or small.”  
“This is what energises me, and keeps me going every day.”   Cordlife Group Ltd  
Cordlife listed on the Mainboard of Singapore Exchange in 2012, and is a pioneer in private cord blood banking in Asia. Established in May 2001, it currently owns the largest network of cord blood banks in Asia, with full stem cell banking facilities in six key markets, namely Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines. Cordlife operates the largest private cord blood banks in Singapore, the Philippines and Indonesia, and is amongst the top three market leaders in India and Malaysia. In January 2018, Cordlife became the market leader in Hong Kong with the acquisition of the largest private cord blood bank in the country, Healthbaby Biotech. Through its majority-owned subsidiary in Malaysia, Stemlife Bhd, Cordlife holds an indirect stake in Thailand’s largest private cord blood bank, Thai Stemlife. Through marketing agents, Cordlife also expanded its presence to Myanmar and Vietnam in 2017, as well as Bangladesh in 2019. Beyond cord blood and cord lining banking, Cordlife offers a comprehensive suite of diagnostics services for the family, including urine-based newborn metabolic screening, non-invasive prenatal testing, paediatric vision screening and family genetic screening services.

 

The company website is: www.cordlife.com  
Click here for the company's StockFacts page.  
For the half year ended 30 June 2020 financial results, click here.  
 

About kopi-C: the Company brew

Text: Jennifer LH Tan Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



Cordlife Banks on Asia’s Expanding Healthcare Focus

Back on <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2017/0113/ltn20170113690.pdf" target="_blank" rel="noopener">13 January 2017</a>, <a href="https://www.smartkarma.com/entities/724" target="_blank" data-smartkarma-citation="entities:724:1" rel="noopener">Golden Meditech Holdings Ltd ("GMH", 801 HK)</a> announced an Offer from Kam Yuen, the chairman &amp; controlling shareholder with 37.7% of shares out.  The voluntary conditional (50% acceptance) cash offer was at HK$1.25/share, a 12.61% premium to last close. The IFA <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2017/0310/ltn20170310027.pdf" target="_blank" rel="noopener">considered</a> the Offer to be fair &amp; reasonable, and it closed on the 10 April with Kam holding 70.36%.
At the time of the Offer, GMH was in negotiation to sell its 65.4% stake in <a href="https://www.smartkarma.com/entities/689" target="_blank" data-smartkarma-citation="entities:689:1" rel="noopener">China Cord Blood Corp (CO US)</a> (CCBC) to Nanjing Yingpeng Huikang Medical Industry Investment for US$840m in cash, which exceeded GMH's market cap of US$474mn under the Offer.
<div>
Taking a couple of steps back .... in <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2015/0429/ltn201504291842.pdf" target="_blank" rel="noopener">April 2015</a>, GMH tabled a non-binding privatization proposal for CCBC at US$6.40. Around this time, GMH was approached by <a href="https://www.smartkarma.com/entities/688" target="_blank" data-smartkarma-citation="entities:688:1" rel="noopener">Nanjing Xinjiekou Department Store (600682 CH</a>; “Nanjing XJK”), resulting in the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/0113/ltn20160113526.pdf" target="_blank" rel="noopener">13 January 2016</a> announcement to dispose of its stake in CCBC.
</div>
<div>
But on the 29 August 2016, Nanjing XJK <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2016/0829/LTN201608291112.pdf" target="_blank" rel="noopener">announced</a> it had withdrawn its application to the CSRC to acquire the stake. So on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/0901/ltn201609011819.pdf" target="_blank" rel="noopener">1 Septe</a><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/0901/ltn201609011819.pdf" target="_blank" rel="noopener">mber 2016</a>, GMH entered into an earnest money agreement (for RMB300mn) with Sanpower Group Limited, the substantial shareholder of Nanjing Xinjiekou.
</div>
<div>
On the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/1230/ltn20161230863.pdf" target="_blank" rel="noopener">30 December 2016</a>, Nanjing Xinjiekou and GMH rejigged the terms of the SPA for CCBC, such that Nanjing Xinjiekou would pay GMH RMB5.764bn (HK$6.398bn/US$840mn) in cash, in place of a previously proposed cash &amp; scrip settlement.
</div>
The stake sale was finally <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2018/0131/ltn20180131440.pdf" target="_blank" rel="noopener">completed</a> on the 31 January 2018. A special dividend of HK$0.30/share (~HK$764mn) was declared in February 2018m.
On the 18 December 2018, the HKEx <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2018/1218/ltn201812189985.pdf" target="_blank" rel="noopener">censured</a> Kam Yuen for failing to "comply with the Exchange Listing Rules in relation to a series of transactions/events involving the Company’s interest in a company called Funtalk China Holdings Limited". This was tied into the "<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/1103/ltn201611031319.pdf" target="_blank" rel="noopener">Fortress Settlement</a>". 
On the 24 May 2019, Kam Yuen <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0524/ltn201905241163.pdf" target="_blank" rel="noopener">resigned</a>. 
<h2>The New News</h2>
GMH was suspended on the 9 June "pending the release of an announcement of inside information of the Company relating to possible implications under the Hong Kong Code on Takeovers and Mergers".
GMH has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0617/2020061701154.pdf" target="_blank" rel="noopener">announced</a> an Offer by way of a Scheme at $0.88/share, a 41.94% premium to last close.
As always, more below the fold.



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Back on 13 January 2017, Golden Meditech Holdings Ltd ("GMH", 801 HK) announced an Offer from Kam Yuen, the chairman &amp; controlling shareholder with 37.7% of shares out.  The voluntary conditional (50% acceptance) cash offer was at HK$1.25/share, a 12.61% premium to last close. The IFA considered the Offer to be fair &amp; reasonable, and it closed on the 10 April with Kam holding 70.36%.
At the time of the Offer, GMH was in negotiation to sell its 65.4% stake in China Cord Blood Corp (CO US) (CCBC) to Nanjing Yingpeng Huikang Medical Industry Investment for US$840m in cash, which exceeded GMH's market cap of US$474mn under the Offer.

Taking a couple of steps back .... in April 2015, GMH tabled a non-binding privatization proposal for CCBC at US$6.40. Around this time, GMH was approached by Nanjing Xinjiekou Department Store (600682 CH; “Nanjing XJK”), resulting in the 13 January 2016 announcement to dispose of its stake in CCBC.


But on the 29 August 2016, Nanjing XJK announced it had withdrawn its application to the CSRC to acquire the stake. So on the 1 September 2016, GMH entered into an earnest money agreement (for RMB300mn) with Sanpower Group Limited, the substantial shareholder of Nanjing Xinjiekou.


On the 30 December 2016, Nanjing Xinjiekou and GMH rejigged the terms of the SPA for CCBC, such that Nanjing Xinjiekou would pay GMH RMB5.764bn (HK$6.398bn/US$840mn) in cash, in place of a previously proposed cash &amp; scrip settlement.

The stake sale was finally completed on the 31 January 2018. A special dividend of HK$0.30/share (~HK$764mn) was declared in February 2018m.
On the 18 December 2018, the HKEx censured Kam Yuen for failing to "comply with the Exchange Listing Rules in relation to a series of transactions/events involving the Company’s interest in a company called Funtalk China Holdings Limited". This was tied into the "Fortress Settlement". 
On the 24 May 2019, Kam Yuen resigned. 
The New News
GMH was suspended on the 9 June "pending the release of an announcement of inside information of the Company relating to possible implications under the Hong Kong Code on Takeovers and Mergers".
GMH has now announced an Offer by way of a Scheme at $0.88/share, a 41.94% premium to last close.
As always, more below the fold.







Golden Meditech (801 HK): Prescription Renewal

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul><li>On 13 January 2017, <a href="https://www.smartkarma.com/entities/724" target="_blank" data-smartkarma-citation="entities:724:1">Golden Meditech Holdings Ltd ("GMH", 801 HK)</a> announced an offer from Magnus Opus (the "Offeror")</li><li>The voluntary conditional cash offer is at HKD 1.25/ share, conditional on 50% acceptance level being reached</li><li>Magnus Opus is 100% owned by Mr. Kam Yuen, the Chairman, CEO and founder of GMH </li><li>The offer is for all issued shares and all outstanding convertible notes of GMH other than those already owned or agreed to be acquired by the Offeror and its concert parties. </li></ul>What is most interesting is that GMH is also in the midst of selling their 65.4% stake in <a href="https://www.smartkarma.com/entities/689" target="_blank" data-smartkarma-citation="entities:689:1">China Cord Blood Corp (CO US)</a> to Nanjing Yingpeng Huikang Medical Industry Investment for USD 840m in cash. This is larger than GMH's current market cap of USD 474m. With the offer at HKD 1.25/share, there is a "free" put option on GMH and there is a chunk of cash coming in... is this a deeply under valued firm or a value trap?

On 13 January 2017, Golden Meditech Holdings Ltd ("GMH", 801 HK) announced an offer from Magnus Opus (the "Offeror")The voluntary conditional cash offer is at HKD 1.25/ share, conditional on 50% acceptance level being reachedMagnus Opus is 100% owned by Mr. Kam Yuen, the Chairman, CEO and founder of GMH The offer is for all issued shares and all outstanding convertible notes of GMH other than those already owned or agreed to be acquired by the Offeror and its concert parties. What is most interesting is that GMH is also in the midst of selling their 65.4% stake in China Cord Blood Corp (CO US) to Nanjing Yingpeng Huikang Medical Industry Investment for USD 840m in cash. This is larger than GMH's current market cap of USD 474m. With the offer at HKD 1.25/share, there is a "free" put option on GMH and there is a chunk of cash coming in... is this a deeply under valued firm or a value trap?

Golden Meditech - Cash Position Will Soon Be Greater than Market Cap... But Is This a Value Trap?

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Nanjing Xinjiekou Department Store Co., Ltd. has announced agreements to buy 20% of SGX-listed Cordlife Group from current shareholders Wells Spring Pte Ltd, Providence Investment Pte Ltd and Coop Limited International Pte Ltd. The group holds 51.87 million shares. The purchase price is S$1.67 per share, a total transaction price of S$86.6 million.We see this move as a first step in the ultimate takeover of Cordlife. Nanjing Xinjiekou is in the process of acquiring US-listed China Cord Blood from Golden Meditech (65% stake) and minority shareholders. Upon closing of these transactions, the company's stake in Cordlife will be under 30%: the threshold for a mandatory takeover offer.

Nanjing Xinjiekou Department Store Co., Ltd. has announced agreements to buy 20% of SGX-listed Cordlife Group from current shareholders Wells Spring Pte Ltd, Providence Investment Pte Ltd and Coop Limited International Pte Ltd. The group holds 51.87 million shares. The purchase price is S$1.67 per share, a total transaction price of S$86.6 million.We see this move as a first step in the ultimate takeover of Cordlife. Nanjing Xinjiekou is in the process of acquiring US-listed China Cord Blood from Golden Meditech (65% stake) and minority shareholders. Upon closing of these transactions, the company's stake in Cordlife will be under 30%: the threshold for a mandatory takeover offer. 

United States

Global Cord Blood Corporation operates as a life sciences enterprise. The Company provides collection of umbilical cord blood stem cells from newborn babies and offers laboratory testing, hematopoietic stem cell processing, and stem cell storage services. Global Cord Blood also operates as cord blood banking operator. Global Cord Blood serves customers in China.

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Global Cord Blood (CO US)

Global Cord Blood: Haitong Raids The Bank

Despite a 9% gross spread to terms, I would not chase shares here. You have a broker oddly making the Offer; whereas a more suitable candidate...

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Singapore Exchange Ltd (SGX)

Golden Meditech (801 HK): Prescription Renewal

Back on 13 January 2017, Golden Meditech Holdings Ltd ("GMH", 801 HK) announced an Offer from Kam Yuen, the chairman & controlling shareholder...

David Blennerhassett

Golden Meditech - Cash Position Will Soon Be Greater than Market Cap... But Is This a Value Trap?

On 13 January 2017, Golden Meditech Holdings Ltd ("GMH", 801 HK) announced an offer from Magnus Opus (the "Offeror") The voluntary conditional...

Crispin Francis

Nanjing Xinjiekou Takes Cordlife Stake

Nanjing Xinjiekou Department Store Co., Ltd. has announced agreements to buy 20% of SGX-listed Cordlife Group from current shareholders Wells...

Kemp Dolliver, CFA

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