IFA deems Cordlife's partial offer not fair and not reasonable

Medeze Treasury proposed to acquire 25.63 million shares in Cordlife at $0.25 each.

Novus Corporate Finance, the appointed independent financial advisor (IFA) to oversee the partial offer made by Medeze Treasury, to acquire a 10.00% stake in Cordlife Group has deemed the offer “not fair and not reasonable”.

On May 13, Medeze Treasury proposed to acquire 25.63 million shares in Cordlife at $0.25 per share. Medeze Treasury currently holds a 0.68% stake in the company.

The offer price represents a discount of approximately 22.4% and 22.8% to the volume-weighted average price (VWAP) of the shares for the three-year and two-year periods prior to and including the last trading day, respectively.

In respect of comparable companies, Cordlife recorded a net loss attributable to equity holders of the company and a negative EBITDA for FY2024.

In addition, the company’s price to net asset values (P/NAV) ratio of 0.54 times is below the range as well as the mean and median P/NAV ratios of the comparable companies.

As a result, the IFA recommends rejecting the partial offer.