MBK Partners, Unison Capital consortium set to acquire Osstem Implant

MBK Partners and Unison Capital have formed a consortium to acquire Osstem Implant. They are planning to buy the management rights of the South Korean dental equipment and supplies manufacturing company.

As per The Korea Times, the stock price of Osstem implant soared after the MBK Partners and Unison Capital Korea consortium announced their intention to acquire the dental supplies firm’s management rights via a tender offer.

It was explained that a tender offer is a type of bid that is commonly made to buy a publicly traded company from shareholders. The offer asks them to sell their stock holdings at a set price and usually at a premium.

Stock market investors reportedly responded in a good way to the bid as they flocked to buy the shares. Moreover, when the news came out, Osstem Implant’s stock price once reached KRW188,000, which is said to be its highest since it went public on the KOSPI market in 2007. The stock price closed at KRW186,300, or about $151, after an increase of 14.65% from the previous session.

As for the MBK Partner and Unison Capital’s consortium, they have tendered a price offer of KRW190,000 per share. Shareholders of the company may register at NH Investment to sell off their stake through the tender offer until Feb. 24.

"As Osstem Implant is an export company and top-tier implant material provider, MBK's strong global network is expected to stably support the firm's long-term growth and continuous R&D activities, while UCK's unparalleled dental industry insights will also provide the firm with solid future growth," an insider from the local capital market told The Korea Times this week.

Meanwhile, The Korea Herald reported that if the tender offer goes ahead as planned, the consortium will become Osstem Implat’s largest shareholder. The company’s chairman Choi Kyu Ok follows in second spot with 9.6% stake ownership, while the Korea Corporate Governance Improvement is third with its 6.57% share.