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
