Honk Kong– based Golden Meditech Holdings has agreed to sell the 65. 4% equity stake in China Cord Bloodstream Corporation (CCBC) to the merger and acquisition fund Nanjing Yingpeng Huikang Medical Industry Investment Partnership for RMB5. 764 billion ($0. 83 billion). Golden Meditech and Yingpen Huikang Fund have entered a sale and purchase contract for the transaction, and Golden Meditech says it will web host an extraordinary general meeting for its shareholders to approve the offer.
As part of the purchase agreement, Golden Meditech will likely give Yingpen Huikang Fund a 3-year performance ensure for CCBC, backed by a cash compensation should CCBC demonstrate an earnings shortfall during the 3 years. Golden Meditech says it will use the capital from the sale of CCBC pertaining to diversification and to consolidate its healthcare services platform plus expand its medical and healthcare businesses.
CCBC is a subsidiary of Golden Meditech and claims to function as the first and largest umbilical cord blood banking firm in China. Primary activities include the provision of wire blood collection, laboratory testing, hematopoietic stem cell digesting, and stem cell storage services.
Fantastic Meditech is an integrated healthcare enterprise operating in the healthcare devices, cord blood storage, and hospital management marketplaces. In September 2016, Golden Meditech and the University associated with Texas at MD Anderson Cancer Center reported with each other setting up a new Houston-based company, Cellenkos, which aims to build up umbilical cord blood-derived T-regulatory cell therapies.