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KCGI to sell stake in dental implant firm to PE consortium

South Korean activist investor the Korea Corporate Governance Improvement Fund, is to sell its 6.92% stake in Osstem Implant Co to a consortium of private equity firms looking to gain control of the dental implant specialist, according to a report by the Korea Economic Daily.

South Korean activist investor the Korea Corporate Governance Improvement Fund (KCGI), is to sell its 6.92% stake in Osstem Implant Co to a consortium of private equity firms looking to gain control of the dental implant specialist, according to a report by the Korea Economic Daily.

In a statement on Friday, KCGI chief executive Kang Sung-boo said the firm had accepted an offer from MBK Partners and Unison Capital Korea (UCK), to buy a controlling stake from Osstem founder and Chairman Choi Kyoo Ok and minority shareholders.

Last month, MBK and UCK agreed to buy 1.4 million shares of Osstem, or about half of Choi’s 20.6% stake, for KRW274.1 billion ($223.4 million), or KRW190,000 apiece. At the same time they also said they were willing to to raise the size of their Osstem share purchase via a tender offer to other shareholders, including KCGI, to secure control of the company.

A sale of KCGI’s Osstem stake at 190,000 won a share, would see its internal rate of return on the shares reach close to 150%.
 

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