Cordlife punches far above weight in China’s cord blood market

Amid new products and close working relations.

Cordlife’s sell-down following its CCBC convertible-note purchase and loan to Magnum Opus could just be the right steps towards securing a foothold in China’s leading cord blood bank.

According to Maybank Kim Eng, Cordlife’s 10% stake in CCBC — 14.2% upon conversion of CBs in 2017 — should only become more valuable over time.

New products from Cordlife are being pushed out via CCBC’s vast China network. Maybank KE observes close working and personal relationships between the managements of both companies.

Maybank KE notes that while its loan to Magnum Opus was unorthodox, it was necessary to cement its relationship with CCBC. The loan is viewed as a proxy for a direct equity investment in CCBC. By controlling the debtor, Cordlife can control the equity part of the equation as well. Despite its mere 10% stake, Cordlife has been able to punch far above its weight.