China Cord Blood Corporation (CO -2.3%) announces that the board has decided to terminate its review and consideration of the going private proposal relating to the acquisition of ordinary shares of the Company not owned by current investor Golden Meditech. It received the proposal two years ago.
Holders of China Cord Blood's (CO +1%) 7% senior convertible notes have notified the company that they intend to exercise the notes in full at $2.838. The action will increase the number of outstanding shares to 120.6M (+50%).
China Cord Blood (NYSE:CO) announces that Ms. Yue Deng, CEO of its Beijing subsidiary, will resign effective tomorrow for personal reasons. Ms. Ting Zheng, CEO of the parent, will take over on an interim basis.
The deal between the company's controlling shareholder, Golden Meditech Holdings, and a new buyer (Nanjing Yingpeng Huikang Medical Industry Investment Partnership) would transfer its entire stake for 5.764B yuan (just under $830M), Geo's Maj Soueidan notes.
That indicates a sale price per share of about 73 yuan, around $10.50, vs. yesterday's NYSE close of $5.47.
Explaining the inflated price (at least in part), the deal likely includes a control premium and hasn't yet been consummated, though the stock is on the move on NYSE.