The Committee for China Cord Fairness Launches Consent Solicitation at Global Cord Blood Corporation
Seeking Consents from Fellow Minority Shareholders to Approve a Series of Proposals Aimed at Protecting Their Best Interests from Oppression by the Majority Shareholder
Has Decided to Commence a Consent Solicitation After Several Letters to the Independent Directors of Global Cord Blood Have Largely Gone Unanswered Thereby Deepening Serious Concerns About Continued Prejudicial Treatment and Imminent Harm to Minority Shareholders
Urges the Minority Shareholders to Voice Collective Opposition to the Proposed Transaction with Cordlife Group Limited and to Demand That the Board Takes Immediate Action to Maximize Value for All Global Cord Blood Shareholders and Improve its Corporate Governance
NEW YORK, Aug. 27, 2019 /PRNewswire/ -- The Committee for China Cord Fairness (the "Committee"), which has been organized by a minority shareholder of Global Cord Blood Corporation (NYSE: CO) ("Global Cord" or the "Company") to protect the interests of the Company's minority shareholders, announced today that it has issued a letter to fellow shareholders and launched a consent solicitation campaign in order to solicit consents to a series of advisory proposals aimed at sending a clear and decisive message to the board of directors of the Company (the "Board") that the minority shareholders will not sit silently by while the Board works towards completing an economically imprudent transaction that sacrifices the interests of the minority shareholders for the benefit of Sanpower Group Corporation, the majority shareholder of Global Cord (the "Majority Shareholder"), and Cordlife Group Limited ("Cordlife" or "CLGL"), of which the Majority Shareholder is the largest holder.
Specifically, the Committee is seeking shareholders' consents to demand that the Board take a series of steps aimed at maximizing shareholder value and protecting the fundamental interests of the shareholder franchise, including (i) conditioning the completion of all business transactions on an un-coerced, informed vote of a majority of the unaffiliated minority shareholders; (ii) retaining an independent international investment banking firm to conduct a strategic review; (iii) requiring the approval of a majority of the unaffiliated minority shareholders before consummating material acquisitions; (iv) aligning management incentives in the Company's executive compensation programs with shareholder value enhancement; (v) requiring the Chair of the Board to be independent; and (vi) providing a consistent dividend policy.
The Committee urges all minority shareholders to deliver their consents at their earliest possible convenience, but in any event no later than October 16, 2019.
The full text of the letter can be viewed at the following link:
The consent solicitation materials, as well as previous letters and communications concerning the shareholders' interests, and the ongoing litigation in the Cayman Islands involving the Company, can be found at the website www.chinacordfairness.com.
The Committee has retained D. F. King & Co., Inc. and Olshan Frome Wolosky LLP to assist it in connection with its consent solicitation efforts at Global Cord.
For questions about how to submit your consent, please contact our proxy solicitor, D.F. King & Co., Inc., at (800) 207-3159.
INVESTOR CONTACT:
Richard Grubaugh
D.F. King & Co.
212-269-5550
[email protected]
SOURCE The Committee for China Cord Fairness
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