Global Cord Blood Corporation (NYSE: CO) Urged in Second Letter From Shareholder Group to Protect Minority Shareholders
July 17 2019 - 9:00AM
PR Newswire (US)
NEW YORK, July 17, 2019 /PRNewswire/ -- The Seiden Group, a
law firm headquartered in New York, representing a shareholder
group of Global Cord Blood Corporation (NYSE: CO) (the
"Company" or "Global Cord") has issued a strong second letter today
to the Independent Directors of Global Cord due to the lack of
response to the first letter sent on June
17, 2019 and rapidly developing events. In the current
letter, the Company is urged to take certain actions to uphold
their fiduciary duty to protect minority shareholder rights.
Cordlife Group Limited (SGX: CLGL), a Singaporean company is
proposing to bring Global Cord to the Singaporean markets, removing
it from the US capital markets in a share swap transaction, leaving
the US shareholders with an investment that may be more difficult
to value, trade and liquidate. The removal of Global Cord
from the US markets would also leave the shareholders with no
protection from the NYSE, the SEC or the Cayman laws. The
shareholder group letter urges the company to do the following:
- Abide by basic corporate governance and transparency and
announce the names of financial advisors and preserve all
instructions in email, including the firms contacted during the
"market check" process by the financial advisor.
- Compare the recapitalization/dividend plan to enhance
shareholder value versus selling at a price that is barely above
cash value.
- Not take an offer that enriches CLGL shareholders at the
expense of CO shareholders.
- Allow minority shareholders to vote to decide whether they want
to subject their cash to the control of Sanpower Group Corporation,
the majority shareholder of CO and a large holder of CLGL.
The shareholder is pleading for a transparent process to enhance
shareholder value before forcing minority shareholders to accept an
extremely risky transaction.
Information concerning the shareholder interests can be found at
the website www.chinacordfairness.com.
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SOURCE The Seiden Group
Copyright 2019 PR Newswire
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