Nanjing Xinjiekou Department Store has agreed to purchase 65.4% stake in China Cord Blood (CCBC) from Golden Meditech Holdings, for around RMB5.76bn ($874m).
Under the deal, Golden Meditech will receive around RMB3.26bn ($504.8m) in cash, as well as RMB2.5bn ($370m) worth new equity of Nanjing Xinjiekou at the initial issue price of RMB18.61 per share.
At the same time, Golden Meditech has signed another deal with Nanjing Xinjiekou to sell the remaining 34.6% stake of CCBC to be obtained to Nanjing Xinjiekou for around RMB1.73bn ($267m), if the privatization of CCBC is completed.
The deal will also allow Golden Meditech to retain CCBC management team for a minimum of three years.
Claimed to be the largest umbilical cord blood bank operator in Mainland China, CCBC provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services.
It has exclusive licenses in Beijing, Guangdong and Zhejiang, in addition to partial interest in the exclusive operator in Shandong.
CCBC is also one of the largest shareholders of Cordlife Group, a major cord blood bank operator in Southeast Asia.
Golden Meditech carries out operations in various markets, including medical devices, cord blood storage and hospital management.
Nanjing Xinjiekou is involved in the business of general merchandise retailing, healthcare and aged care services.
Image: Nanjing Xinjiekou Department Store to acquire 65.4% stake in China Cord Blood (CCBC) from Golden Meditech. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.