Blue Ocean Capital completes exit from China Cord Blood

Chinese private equity firm Blue Ocean Capital has exited from NYSE-listed China Cord Blood Corporation, in which it invested $250 million in 2015.

It has sold the stake to Nanjing Ying Peng Hui Kang Medical Industry Investment Partnership, a merger and acquisition fund sponsored by the SanPower Group, the fund manager said in a statement.

Financial details were not disclosed.

In a March 2017 regulatory filing, Golden Meditech Holdings, the then parent firm of China Cord Blood, said it had sealed an agreement to sell 65.4 per cent of the cord blood collection company’s enlarged capital to SanPower’s investment unit for RMB5.76 billion ($875.5 million).

China Cord Blood is said to be the largest umbilical cord blood banking operator in China.

Blue Ocean Capital initially purchased a promissory note from Golden Meditech with the securities of China Cord Blood being the underlying assets.

“This deal illustrates our ability to identify and execute complex multi-jurisdictional cross-border transactions to unlock and create value. With our strong investment capability and deep specialized sector knowledge, Blue Ocean Capital will continue to seek investment opportunities in our specialized sectors and horizon,” said Frank F. Yang, founding partner and CEO of Blue Ocean Capital.

The Chinese PE firm specializes in healthcare, TMT and financial services. Their first fund is $300 million, denominated in both RMB and USD.

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