Nanjing Xinjiekou Department Store Co. said it will acquire China Cord Blood Corp. for an estimated 9.01 billion yuan ($1.4 billion).
Xinjiekou will buy a 65.1 percent stake held by Golden Meditech Holdings Ltd. for about 7.26 billion yuan in cash and shares, and buy out minority stakeholders for an estimated 1.75 billion yuan, it said in a statement. The value of Golden Meditech’s stake will be evaluated by a third party at a later date and the two companies will negotiate the price based on the evaluation. In August, Xinjiekou proposed to buy China Cord Blood assets for at least 6 billion yuan in cash, stock, or a combination of both.
China Cord Blood in April received an offer from Golden Meditech, its biggest shareholder, to take it private. Xinjiekou, which last year bought an 89 percent stake in U.K. department store House of Fraser, said it is buying assets to accelerate its development strategy. Xinjiekou’s Shanghai-listed shares have been suspended since June 30. Golden Meditech’s shares rose 0.9 percent in Hong Kong on Thursday.