CordLife's takeover offer for StemLife turns unconditional

One of the cryo containers that store umbilical cord blood and bone marrow samples at the private cord blood bank StemLife Bhd in Kuala Lumpur. The samples are kept in the stacked metal boxes to the left of the cylinder.

KUALA LUMPUR: Singapore-listed consumer healthcare company CordLife Group Ltd’s takeover offer for StemLife Bhd has turned unconditional after it acquired 2.7 million shares representing a 1.09% stake via the open market, raising its shareholding to 50.03%.

In a filing with Bursa Malaysia, the ACE Market-listed cord blood bank said Maybank Investment Bank, on behalf of CordLife, had informed StemLife of the open market purchase at 45 sen per share -- the same price as CordLife’s cash offer price under the exercise.

StemLife, which collects, tests and preserves umbilical cord blood stem cells and tissue, received CordLife’s notice of conditional takeover offer on Nov 12. At the time, it was subject to CordLife getting valid acceptances that resulted in it holding more than 50% of voting shares/rights of StemLife by 5pm on Dec 28.

CordLife also said that if it received acceptances leading to it holding 75% or more of StemLife’s listed shares, it would seek to withdraw the target company’s listing status.

As of Nov 27 - the last practicable date prior to the posting of the offer document dated Dec 3, CordLife had owned 33.03% of StemLife’s issued and paid-up capital.

Apart from the takeover offer becoming unconditional, it said all other details, terms and conditions of the offer as set out in the offer document would remain the same.

StemLife share price has risen 12.5% from 40 sen a month ago to 45 sen at Monday’s close. The counter closed unchanged on Monday, with 2.886 million shares traded.