CORDLIFE COMPLETES ACQUISITION OF CORD BLOOD AND CORD TISSUE BANKING BUSINESSES AND ASSETS IN INDIA, THE PHILIPPINES, HONG KONG AND INDONESIA
- Acquisition of businesses and assets for a total consideration of A$5.5 million to expand overseas operations
- Transaction to enlarge the Group’s geographical footprint in Asia
- 2007-2011 CAGR of annual incremental storage units for private cord blood banks in Indonesia, Philippines and India exceeds 30%
Singapore, 28 June 2013 – Cordlife Group Limited (“Cordlife”, and together with its subsidiaries, the “Group”), a leading cord blood and tissue banking service provider, announced today that it has completed the acquisition of Australia-listed Cordlife Limited’s (“CBB”) cord blood and cord tissue banking businesses and assets in India, the Philippines, Hong Kong and Indonesia (the “Acquisition”) for an aggregate consideration of A$5.5 million. The Acquisition was first announced on 17 May 2013.
As announced by Cordlife on 17 May 2013, the consideration for the Acquisition will be fully satisfied in cash (50% on completion of the Acquisition and the remaining 50% three months thereafter) and funded by the net proceeds raised from the Group’s initial public offering on the SGX-ST in March 2012.
The Acquisition will enable Cordlife to enlarge its geographical footprint in Asia, and is in line with the Group’s intentions, as stated in its listing prospectus, to expand its business operations overseas.
Maybank Kim Eng initiate coverage on cord blood bank Cordlife with a BUY rating and a Street-high TP of SGD1.29, which offers 47% upside.
CORDLIFE with a strong platform to expand its product range combined with dominant positions in Singapore, Philippines, Indonesia and a strong presence in Hong Kong, India and China, it is poised to transform into Asia’s infant and maternal healthcare products champion over the next two years, riding the sweet side of both developed and emerging markets.
CORDLIFE also expect to launch a wider range of maternal and infant healthcare products to better utilise its regional platform, which will drive economies of scale, margins and both top and bottomline growth.
For Cordlife sky’s the limit and there is great potential to add more products and services that could be immediately earnings accretive.
