SG Dealbook: Cordlife acquires HealthBaby HK; HC Surgical picks majority in HMC Medical

Singapore city view. Photo: Bloomberg

Cordlife Group has acquired HealthBaby Hong Kong while HC Surgical has picked up a majority stake in HMC Medical.

Cordlife Group acquires HealthBaby Hong Kong

SGX-listed Cordlife Group is fully acquiring a private cord blood bank, HealthBaby Hong Kong, for $7 million in cash (S$9.3 million). Cordlife Group will assume debt to the tune of $2.5 million in the cord blood banking firm.

Operating in Hong Kong since 2006, HealthBaby Hong Kong has stored 20,000 units of blood to date and made an after-tax net profit estimated at HK$12.7 million over the FY17 ended October. It is part of the HealthBaby brand, founded in Taiwan by entrepreneur Chang Hsiu-Kang. Chang is the controlling shareholder of the transaction’s vendor, Stemgen Biotech Holding, which is incorporated in the British Virgin Islands.

The acquisition will see Cordlife assume the vendor’s debt of HK$138.2 million owed to HealthBaby Hong Kong.

According to Cordlife, internal resources and bank borrowing will fund the acquisition. Michael S. Weiss, Head of Business Development and M&A at Cordlife, said, “This is an attractive acquisition, enabling us to become the leader in an important market just adjacent to China. At the end of the day, we are paying only a $9.5 million enterprise value for all of HealthBaby Hong Kong.”

HC Surgical acquires 51% of HMC Medical

HC Surgical Specialists is acquiring a majority 51 per cent stake in HMC Medical for a consideration of S$673,000. HMC has a paid-up share capital consisting of 1,000 shares of $1 each as at 3 January 2017. HC Surgical employed part of its IPO proceeds to fund the acquisition.

The acquisition will increase HC Surgical’s footprint in Singapore. The deal will see HMC become a subsidiary of HC Surgical. The vendors for the transaction who divested shares include Dr Andrew Chee Hsing Gary, Dr Lee Peng Low, Catherine Foo Wai Lin, Grace Goh Hin Hwa and Wong Yuen.

Post-acquisition, HMC continues to be helmed by Dr Chee and Dr Lee who individually hold 24.5 per cent stakes in the firm.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.