Osstem Implant Headed for Delisting from Kosdaq Stock Market

Osstem Implant, a Seoul, South Korea-headquartered dental equipment and supplies manufacturing company, may be delisted from the Kosdaq stock market soon. The company announced late last week that it would be discussing the delisting move at the upcoming extraordinary general meeting of the company, which was scheduled for June 28.

Osstem Implant is reportedly planning to start the delisting process once the resolution is approved at the general meeting that is expected to be attended by its largest shareholders - MBK Partners and Unison Capital Korea private equity funds firms.

According to The Korea Herald, the consortium formed by MBK Partners and Unison Capital Korea has purchased a 96.1% stake in Osstem Implant after a second tender offer. The consortium has now indicated it resolved to proceed with the process of delisting from the secondary bourse Kosdaq.

It was reported that when the largest shareholder of a Kosday-listed company submits an application for voluntary delisting, the Korea Exchange will call for a corporate review committee to determine if the share ratio and tender offer of the largest stakeholder meet the standards for investor protection. The committee will also have to evaluate if it serves the public interest.

It was explained that the largest shareholder would acquire the small shares of minority shareholders if the delisting proposal is given the "go ahead" signal. The minority shares in the dental equipment manufacturing company are only 3.9%.

"If the delisting is approved following the KRX's review of the application, the largest shareholder will purchase the stock from retail investors who wish to sell it for a certain period of time which is likely around six months," an official of the Osstem Implant stated.

Meanwhile, The Korea Times reported that shares of Osstem Implant closed at KRW188,800 per share late last week. This is up by 1.67% compared to the previous session.

Photo by: Osstem Implant Press Room