Hot stock: Cordlife rises 19.3% on possible share transaction
SHARES of Cordlife Group hit a three-year high amid heavy trading on Monday (Jun 26) after the company said it was aware of a possible transaction for an offer for its shares.
Its counter rose as much as 19.3 per cent or S$0.08 to trade at S$0.495 as at 11.31 am, with some 1.2 million shares changing hands. The last time the counter closed near this level was on Aug 28, 2019.
No married deals were recorded at the time, ShareInvestor data indicated.
On Monday, the cord blood bank company said it received a written notice dated Jun 21 that there are confidential discussions between Cradle Investments and a third party over a possible transaction that may or may not lead to an offer for Cordlife’s shares.
Cordlife vice-chairman Ho Choon Hou, who is an appointed representative, member of the investment committee, and a partner of Southern Capital Group, had also informed the company on Jun 23 that one of the funds managed by Southern Capital has a deemed interest in Cradle Investments.
He also said that a deal is being contemplated and negotiations by Cradle Investments are taking place.
Due to his role at Southern Capital, Ho has abstained and will continue to abstain from all matters related to the deal due to the conflicts of interest. He will also recuse himself from any of the company’s decisions regarding the matter.
The directors at Cradle Investments, Kenneth Tan Jhu Hwa and Boh Sang Wei, are also, respectively, a director and a principal at Southern Capital, according to data platform Handshakes.
The board understands from the notification that discussions are ongoing. There is no certainty that the discussions will advance beyond the present stage nor any assurance that any definitive agreements will be inked as a result of the talks.
