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Actionable news in CO: CHINA CORD BLOOD CORP,

July 26, 2017 Open Letter to the Board of China Cord Blood Corp from Jayhawk Capital

We recommend the Board repurchase 30 million shares as an effective use of the excess cash on the balance sheet that benefits all shareholders. Shareholders who would like to sell may do so of their own free will, while other shareholders like Jayhawk can hold their shares to participate in the future growth of the company. This will increase the ownership of the remaining minority shareholders as well as the soon-to-be new majority shareholder, Nanjing Ying Peng Hui Kang Medical Industry Investment Partnership ("NYPHK"). NYPHK is an affiliate of the Sanpower Group, which recently completed the $820 million acquisition of Dendreon Pharmaceuticals LLC, the maker of a stem cell treatment for prostate cancer, from Valeant Pharmaceuticals International, Inc.

Following are four valuation models for China Cord based on free cash flow multiple, earnings multiple, asset value (balance sheet) and discounted cash flow:

  1. Free Cash Flow Multiple: If the current...

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