TROUBLED cord-blood bank Cordlife Group : P8A 0% reiterated on Wednesday (Apr 24) that its substantial shareholder Nanjing Xinjiekou is still interested in making a potential offer to buy over Cordlife shares that it does not already own, even though it has not reached a firm decision yet.

According to Cordlife’s annual report, Nanjing Xinjiekou – which is listed on the Shanghai Stock Exchange – owns a 20.3 per cent stake in Cordlife as at Mar 20, 2023.

In a bourse filing released on Wednesday, Cordlife said it received a third letter from SAC Capital – on behalf of Nanjing Xinjiekou – on Apr 23, regarding an update on the latter’s potential offer to buy over Cordlife’s remaining shares.

The cord-blood bank had previously received two letters dated Apr 22 from SAC Capital, stating that Nanjing Xinjiekou was reviewing its shareholding in Cordlife and considering making an offer to increase its shareholding.

Based on the most recent third letter, Cordlife said that both SAC Capital and Nanjing Xinjiekou have been “monitoring and evaluating the recent developments” relating to Cordlife, of which “are material to Nanjing Xinjiekou’s consideration of the potential offer”.

Cordlife is currently embroiled in a shareholder dispute, with two substantial shareholders separately requisitioning to remove directors from its board.

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This comes in the wake of findings that more than 2,000 cord blood units were damaged when they were exposed to suboptimal temperatures, in one of the biggest scandals to hit the industry.

On Apr 17, Cordlife announced plans to raise S$8.2 million by issuing a total of 51.2 million new ordinary shares at S$0.16 apiece. A group of Cordlife’s directors later filed an injunction application before the High Court of Singapore to restrain the company from issuing new shares.

Cordlife said as at Apr 23, Nanjing Xinjiekou was “still interested” in making the potential offer and is in discussions with SAC Capital concerning the offer’s terms. Nanjing Xinjiekou was also taking into account Cordlife’s recent developments and their impact on the company’s share price.

However, no firm decision had been reached by Nanjing Xinjiekou as to whether it would go through with the potential offer, said Cordlife, adding that “there is no certainty or assurance that any such offer will be made”.

The company further stressed that nothing in the third letter from SAC Capital shall be construed as Nanjing Xinjiekou having a firm intention to make an offer for Cordlife’s shares.

“Nanjing Xinjiekou will inform the company of any material update on the foregoing,” it said.

Shares of Cordlife closed at S$0.126 on Wednesday, up S$0.004 or 3.3 per cent, before the announcement.