The information contained herein is restricted and is not for publication, distribution or release, directly or indirectly, in or into, the United States.
HONG KONG, June 4 /PRNewswire-Asia/ -- China Cord Blood Corporation ("CCBC" or "the Company") (NYSE: CO), China's first and largest cord blood bank operator today enhanced its presence in the Asia Pacific region through a greater ownership stake in Cordlife Limited, ("Cordlife") (ASX: CBB), a pan Asia cord blood bank operator listed on the Australian Securities Exchange. CCBC agreed to underwrite a renounceable rights issue offered by Cordlife Limited, which will increase CCBC's ownership stake in Cordlife. Cordlife has presences across Asia, with operations in Hong Kong, Singapore, the Philippines, Indonesia and India, two of which are countries with significantly high annual birth rates in Asia.
Subject to Cordlife shareholders' approval and relevant regulatory approvals, Cordlife will offer the rights to existing shareholders residing in Australia, New Zealand and Singapore. Existing Cordlife shareholders can subscribe one new share for every three shares held on record date at a subscription price of AUD 0.32 per share, representing approximately 30% discount to the 30 days average closing price. Cordlife will issue an aggregate 36,316,088 new shares and proceeds raised will be used for regional expansion plans and working capital. CCBC will underwrite the entire rights issue for a 5% underwriting fee and will subscribe for any share shortfall if the existing shareholders of Cordlife fail to exercise their rights. Pending the allotment results, CCBC's indirect equity interest in Cordlife could increase from 16.03% to a maximum of 37.02%.
CCBC will fund the subscription of Cordlife's new shares by internal resources. The rights issue is expected to close on July 19, 2010.
"For the past couple of years, we have witnessed Cordlife's solid track record and consistent growth. We believe that this investment represents an attractive opportunity to seamlessly gain access to multiple promising regions within Asia," said Ms. Ting Zheng, Chairperson and CEO of China Cord Blood Corporation. "Cordlife has opened the door for us to enter into the larger Asian cord blood bank market. Together with Cordlife, we now have access to half of the globe's population."
"With the additional stake in Cordlife, we are closer to reaching our goal to be the largest cord blood bank operator across the Asia Pacific region," Ms. Zheng further stated. "We will continue to seize compelling investment opportunities across Asia, along with our geographical expansion within the China market."
Ineligible Shareholders
Cordlife shareholders with a registered address outside Australia, New Zealand or Singapore at the record date will not be eligible to participate in the rights issue. These materials are not an offer for sale of any securities in the United States. Neither the renounceable rights nor the securities underlying them may be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. Cordlife has not registered, and does not intend to register, any portion of the potential rights issue in the United States, and does not intend to conduct a public offering of any securities in the United States. Any such public offering would be made by means of a prospectus that could be obtained from Cordlife and would contain detailed information about the company and management, as well as financial statements.
About China Cord Blood Corporation
China Cord Blood Corporation is the first and the largest cord blood banking operator in China in terms of geographical coverage and is the only cord blood bank operator with access to more than one license (i.e., Beijing, Guangdong and Shandong). Under the current PRC government regulations, only one licensed cord blood bank operator is permitted to operate in each licensed region and only six licenses have been issued as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services. For more information about China Cord Blood Corporation, please visit: http://www.chinacordbloodcorp.com .
For more information, please contact:
China Cord Blood Corporation
Ms. Joeling Law
Phone: +852-3605-8180
Email: ir@chinacordbloodcorp.com
Integrated Corporate Relations, Inc.
In the United States:
Ashley M. Ammon or Christine Duan
Phone: +1-646-277-1200
In China:
Wei-Jung Yang
Phone: +86-10-6599-7968
