HONG KONG, Dec. 15 /PRNewswire-Asia/ -- Key points: -- CordLife secures strategic stake in China Stem Cells (South) Company Limited with US$10 million investment. -- The deal gives CordLife exclusive access to about 1 million new births in the province of Guangdong annually. -- CordLife's geographical footprint in Asia Pacific is enlarged, with direct access to China and India, two of the largest and fastest growing cord blood banking markets in the world.
CordLife Limited ("CordLife" or "the Company") announced that it has completed a Sale and Purchase Agreement with existing minority shareholders of China Stem Cell (South) Company Limited ("CSC South") for a 10 per cent stake. This US$10 million investment provides CordLife a foothold in one of the largest and fastest growing cord blood banking markets in the world. The access to this nascent market will be a catalyst to accelerate the growth of Company.
CSC South directly owns a 100 per cent equity interest in one of the largest cord blood banks in Asia, Municipality Tianhe Nuoya Bio-engineering Co. Ltd ("Nuoya"). Established since 2006, Nuoya is the sole licensed cord blood banking operator in Guangdong province, one of the most prosperous and populous provinces in China. It has exclusive and full access to about 1 million new births in the province annually by virtue of the licensing rules in the country. Adopting a channel-based strategy to access the market, Nuoya has developed strategic sales and marketing network through more than 90 major hospitals in the province to tap on the market's fast-growing demand for cord blood banking services.
"Our investment in CSC South is a significant part of the Company's growth strategy. As a result of this investment, CordLife now has direct access to China and India, two of the largest and fastest growing cord blood banking markets in the world. These markets are critical in driving long-term sustainable growth for the Company," said Mr Steven Fang, Group CEO of CordLife Limited, who will be on CSC South's board of directors.
The investment could potentially create financial benefits for CordLife. A potential increase in the intrinsic value of the investment may be expected in the medium term if Nuoya is able to capitalize on the vast market potential and increase its clientele base. Business synergy could also be achieved through CordLife's subsidiary in Hong Kong with collaborative opportunities to systematically market the Company's cord blood banking services to about 20,000 Chinese nationals who deliver in Hong Kong.
About CordLife Group
CordLife operates Asia Pacific's most experienced and largest network of stem cell banks with full processing and cryopreservation storage facilities in Australia, Singapore, Hong Kong, Indonesia and India as well as marketing operations in Macau, Philippines and Thailand. The Group's in-depth knowledge of stem cell banking practices and standards are recognised by many international Quality Standard organizations such as the American Association of Blood Banks (AABB), Therapeutic Goods Administration (TGA) and International Organisation for Standardisation (ISO). In 2006, CordLife became the only stem cell bank in the world to be awarded the prestigious World Economic Forum 'Technology Pioneer'. CordLife is listed on the Australian Securities Exchange, under the stock code; CBB. For more information on the CordLife group of companies, please visit http://www.cordlife.com .
For further information, please contact: Cynthia Chow, Marketing Manager CordLife (Hong Kong) Ltd Tel: +852-2511-8881 / +852-9400-2400 Email: firstname.lastname@example.org YY Wong, Senior Marketing Executive CordLife (Hong Kong) Ltd Tel: +852-2511-8881 / +852-9518-9988 Email: email@example.com
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