Megagen decides to discontinue the business relationship with Straumann, develops global market strategy with its own capabilit
Megagen decides to discontinue the business relationship with Straumann, develops global market strategy with its own capability.
Megagen Implant Co., Ltd. (hereinafter “Megagen”) announced that Megagen completed the investment contract with Straumann Holding AG (hereinafter “Straumann”) smoothly by repaying the full amount of the principal and interest of the convertible bonds on February 28, 2017.
Megagen has received a total investment of USD 30 million from Straumann to create a new growth engine based on the proposal of Straumann as a ‘companion to the global implant market strategy’.
Megagen began negotiating with Straumann for conversion pricing in accordance with Straumann's conversion rights, and Megagen demanded rational and legitimate valuation of the enterprise. However, Straumann did not go to the negotiations faithfully and showed the behavior of a typical vicious corporate hunter, such as making Megagen a simple production facility or making a proposal to make a paper company. Hence, Megagen decided that it was difficult to continue the relationship with Straumann and applied for international arbitration to the International Chamber of Commerce (ICC).
After that, Straumann gave up the right to convert the convertible bonds into shares and offered a consensus to Megagen after the arbitration proceedings did not proceed according to their wishes for about 6 months. Since Megagen has its own capabilities and momentum to grow into a global implant company, it decided that Staumann's help was no longer necessary and resolved all of its principal and interest payments with Straumann. Megagen said, "We have solved all of the issues such as dilution of stock value and transfer of management rights by fully repaying convertible bonds issued to Straumann."
MegaGen is growing explosively with sales of KRW 41 billion in 2014, sales of KRW 54.27 billion in 2015, and estimated sales of KRW 71.2 billion in 2016. Moreover, under the full support of Daegu Metropolitan City, it is establishing a state-of-art manufacturing facility in Daegu Metropolitan City, S. Korea.
Megagen will pay more attention to the global market by redeeming the convertible bonds and completion of the new manufacturing facility in 2017. Through this, Megagen plans to carry out the IPO of the KOSDAQ market within a practicable period. In the long term, Megagen will expand its business field and market to achieve annual sales of KRW 200 billion. Megagen aims to grow into the number one player in domestic digital dentistry, the world’s third largest global premium implant company, and comprehensive oral healthcare provider.
Dr. Kwang-bum Park, CEO of Megagen, said, "Although we have been promoting mutual growth, we have come to the conclusion that Straumann is not necessary for Megagen's growth strategy. Our goal is to lead the dentistry all over the world through continuous R & D investment as well as leading the domestic dental industry with our own innovative digital dental technology. "