Cordlife acquires private cord blood bank in Hong Kong for $9.3 mil with debt

SINGAPORE (Jan 3): Cordlife Group is fully acquiring a private cord blood bank in Hong Kong, HealthBaby Hong Kong, for US$7 million in cash ($9.3 million) after adjusting for US$2.5 million in the company’s cash and bank loans that will remain in place.

As part of the transaction, the group will also assume the vendor’s debt of HK$138.2 million ($23.5 million) owed to HealthBaby Hong Kong, which it will treat as an intercompany loan owing to its new subsidiary.

HealthBaby Hong Kong has been operating in the country since 2006 and has stored 20,000 units of blood to date. It made an after-tax net profit of about HK$12.7 million over the FY17 ended Oct.

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