Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on December 7, 2015.

 

Stemlife Bhd (+ve)

Shares of Stemlife (Fundamental: 1.95/3, Valuation: 0/3) closed unchanged at 45 sen last Friday, on heavy volume. 

On November 12, the company received a conditional take-over offer from Singapore-listed Cordlife Group Limited, after the latter’s shareholding crossed the 33% mandatory general offer threshold. 

The offer price of 45 sen per share carries a premium of 4 sen or 9.8% over its five-day volume weighted average market price prior to the offer. Shareholders have until December 28 (first closing date) to accept the offer, subject to extension by Cordlife. In the event Cordlife secures a 75% stake or more, it does not intend to maintain the listing status of Stemlife.

Last Thursday, Cordlife acquired 22.0 million shares of Stemlife in the open market, raising its stake to 41.9%. 

Stemlife is a stem cell banking company, providing services to store umbilical cord blood-derived stem cells. 

The stock currently trades at 4.4 times book.

stemlife_swm_fd_071215

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