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| Osstem Implant headquarters in Seoul / Yonhap |
By Lee Min-hyung
Osstem Implant is on its way to being delisted from the Korean stock market after its major shareholder decided to put that option up for a vote at the upcoming shareholders' meeting in June.
A consortium ― consisting of MBK Partners and Unison Capital Korea ― has pushed for the delisting of the dental implant manufacturer to promote speedier decision-making and possible synergy with Medit, a 3D dental scanner maker. MBK acquired a controlling stake in Medit from Unison for 2.4 trillion won ($1.8 billion) at the end of 2022, banking on its oligopolistic growth potential across the globe.
The two private equity firms (PEFs) then decided to establish a special-purpose company called Dentistry Investment to take over the management rights of Osstem Implant. The consortium holds a 96.1-percent stake in Osstem Implant. The general meeting of shareholders will be held on June 28. If the agenda is passed by shareholders, Osstem Implant will immediately request the Korea Exchange to be delisted.
"If the exchange operator approves the planned delisting, Dentistry Investment will acquire the remaining stocks from minority shareholders over a certain period of time, which is estimated to be around six months," Osstem Implant said in a note to investors.
According to the exchange, any firms seeking voluntary delisting can push ahead with the plan if its largest shareholder obtains more than 95 percent of all issued stocks.
The two PEFs are betting big on the huge growth potential of the digital dentistry industry, as was shown by their aggressive move to purchase the controlling stake in Osstem Implant.
One possible scenario is that they will adopt a "bolt-on" strategy by merging Medit and Osstem sometime in the near future. A bolt-on acquisition is a term used when a larger company purchases a smaller one in the same industry.
In 2017, MBK enjoyed hefty proceeds by purchasing Japan's Accordia Golf. The PEF also bought Next Golf Management in 2019. MBK then sold Accordia Next Golf in November 2021 for more than 4 trillion won. MBK's gains surpassed 3 trillion won from the deal after it invested around 800 billion won.
Shares of Osstem Implant closed at 188,800 won per share, Friday, up 1.67 percent from the previous session.
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