HONG KONG, Sept. 18, 2012 /PRNewswire-FirstCall/ -- China Cord Blood Corporation (NYSE: CO) ("CCBC" or the "Company"), the first and largest cord blood banking operator in China and Golden Meditech Holdings Limited ("Golden Meditech", 801.HK; 910801.TW), a leading integrated healthcare enterprise in China announced that they entered into agreements under which Golden Meditech, is expected to invest $50 million into CCBC to support its further business expansion and to capitalize on China's fast-growing healthcare services industry.
The convertible note carries a 7% interest per annum and a total rate of return of 12% per annum. The convertible note holder can convert the convertible note into ordinary shares of the Company at a conversion price of $2.838. The total ordinary shares issuable represents approximately 15.5% of the enlarged share capital of the Company.
With the demand for cord blood banking services flourishing and the number of new subscribers continuing to rise, the additional capital will pave the way for CCBC to seize market opportunities and bring premium cord blood banking services to even wider public in China and any other untapped markets. CCBC is actively pursuing its China expansion strategy by building new storage facilities in Guangdong and establishing storage facility to service the Zhejiang market. The added capital infusion increases the Company's war chest to enable deeper and more rapid penetration into these regional markets, and be better prepared to pursue other opportunities as they arise.
Upon completion of the transaction, Mr. Yuen Kam, will be appointed as Chairman of CCBC and Ms. Ting Zheng will continue her role as the Chief Executive Officer of CCBC. Mr. Yuen Kam is currently the Chairman and Chief Executive Officer of Golden Meditech and has extensive experience in the healthcare industry of China."Golden Meditech has long been the largest shareholder of CCBC and currently holds 41.8% of CCBC. Our investment demonstrates our strong confidence in the prospects of China's cord blood banking industry and CCBC's market leadership," said Mr. Kam. "We believe in the potential embedded within CCBC. In serving as the Chairman of CCBC, I am honored to work with an experienced management team. With my support, I envision the CEO and her team will be able to broaden CCBC's reach so that more families can have the opportunities to protect their love ones through CCBC's premium healthcare services." Ms. Ting Zheng, Chief Executive Officer of CCBC stated, "We are glad to receive such overwhelming and valuable support from our major shareholder who shares our vision and beliefs. We believe that CCBC will create a brilliant future under Mr. Kam's leadership and extensive experience in the healthcare industry."
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