Global Cord Blood Corporation Announces Rejection of Alternate Ocean Proposal

Rhea-AI Summary

Global Cord Blood Corporation (NYSE: CO) announced the rejection of the Alternate Ocean Proposal, which suggested acquiring the company's shares at US$5.00 each. The Board of Directors, based on a special committee's recommendation, believes the offer does not accurately reflect the company's value and fails to maximize shareholder returns. GCBC is a leading provider of cord blood banking services in China, recognized for its extensive geographical coverage and multiple operational licenses.

Positive

• Company maintains independence by rejecting acquisition proposal.
• The Board's decision aims to maximize shareholder value.

Negative

• The Alternate Ocean Proposal was deemed undervalued.

HONG KONG, Dec. 16, 2021 /PRNewswire/ -- Global Cord Blood Corporation (NYSE: CO) ("GCBC" or the "Company"), China's leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services, today announced that its Board of Directors (the "Board") decided to reject the non-binding proposal letter ("Alternate Ocean Proposal") from Alternate Ocean Investment Company Limited ("Alternate Ocean") received by the Board dated March 2, 2021, pursuant to which Alternate Ocean proposed to acquire all outstanding ordinary shares of the Company for US$5.00 per ordinary share in cash, based on the recommendation from a special committee of independent directors (the "Special Committee").  The Special Committee and the Board believe such proposal in its original form fails to properly reflect the value of the Company and maximize shareholder value.

About Global Cord Blood Corporation

Global Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Global Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit the Company's website at: http://www.globalcordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates", "believes", "expects", "can", "continue", "could", "estimates", "intends", "may", "plans", "potential", "predict", "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.

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SOURCE Global Cord Blood Corporation

FAQ

What was the Alternate Ocean Proposal to Global Cord Blood Corporation?

The Alternate Ocean Proposal suggested acquiring all outstanding ordinary shares of Global Cord Blood Corporation for US$5.00 per share.

Why did Global Cord Blood Corporation reject the proposal?

The company rejected the proposal because it was considered to not properly reflect its value and failed to maximize shareholder value.

Who recommended the rejection of the Alternate Ocean Proposal?

The rejection was recommended by a special committee of independent directors.

What is the significance of the rejection for investors in CO?

The rejection signals the company's commitment to maximizing shareholder returns and maintaining its independence.