IFA Says Partial Offer for Cordlife Not Fair, So Shareholders Should Reject It

The independent financial adviser (IFA) assessing the offer to acquire a stake in Cordlife Group has concluded that the offer is unfair and unreasonable, and has recommended that shareholders reject it.

- Sheila Chiang

Thailand's Medeze Group, which is among South-east Asia's largest stem cell storage and services providers, on May 13 announced plans to acquire a 10 per cent stake in Cordlife, or 25.63 million shares, at 25 cents per share.

If the offer is successful, Medeze Group, which already has 0.68 per cent of Cordlife, will own a 10.68 per cent stake in the company.

However, Novus Corporate Finance, the IFA for the partial offer to acquire a 10 per cent stake in Cordlife Group, said on June 11 that the offer price represents a discount to the volume-weighted average price of the shares after the last trading day and up to the latest practicable date.

It also noted that the offer price represents a discount to the closing price of the shares as at the latest practicable date.

The IFA further added that the offer price represents a discount to the net asset value and net tangible asset per share as at Dec 31, 2024.

The offer price is also lower than the estimated fair value range of 47.8 cents to 58.8 cents for each share.