The offer price represents a premium of 61.3% to Cordlife’s last-traded price of 15.5 cents on May 9. It also represents a premium of 61.3%, 60.3%, 59.2% and 61.3% to the volume weighted average price (VWAP) of the last one-, three-, six- and 12 month periods. The offer price is 42.9% above Cordlife’s 52-week high traded price of 17.5 cents as well.
The offer is open for about 28 days once the offer document is dispatched (also known as the first closing date). It will only be valid should Medeze successfully acquire 10% of Cordlife’s stake as at the record date, which is 14 days before the first closing date.
Should the offer successfully take place, Medeze Group will own a 10.68% stake in Cordlife. Recognising the synergistic nature of both businesses, Medeze says will look at exploring business opportunities with Cordlife to “create long-term value and mutual benefit for both parties” upon the completion of the offer.
For instance, should a partnership take place, Medeze could offer services such as analysing and storing nk (or natural killer) cell and hair follicle banking services to Cordlife’s customers. On the other hand, Cordlife could offer its chromosomal and genetic analysis and screening services to Medeze Group’s customers, the Thai-listed group suggests.
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According to Medeze, the group recorded a total revenue of 874.3 million baht ($34.1 million) and a net profit of 338.7 million baht, or 23.6% higher and 41.4% up y-o-y respectively. The group’s asset base more than tripled to over 3.4 billion baht following its listing on the Stock Exchange of Thailand.
Shares in Cordlife last traded at 15.5 cents before its trading halt on the morning of May 13.
