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Business Europe

According to Straumann, recent developments and long arbitration have made the partnership with MegaGen unattractive. (Photograph: Graham Stewart/Shutterstock)
0 Comments Feb 28, 2017 | Business Europe

Deal collapses between Straumann and MegaGen

Post a comment by Dental Tribune International

BASEL, Switzerland/DAEGU, South Korea: Global dental implant manufacturer Straumann has announced that it will no longer be pursuing its plans to invest in or partner with the South Korean implant company MegaGen Implant. Instead of converting its US$30 million (€28 million) bond into MegaGen shares, the group has received full repayment in cash with interest.

In 2014, Straumann purchased convertible bonds from MegaGen and announced that it would be exercising its right to convert these bonds into shares to acquire a controlling stake in MegaGen in July last year.

After the announcement, MegaGen disputed the conversion price and calculation procedure, and despite significantly increased offers from Straumann, initiated arbitration under the International Chamber of Commerce rules. This could have taken up to two years, depending on the progress of the arbitration.

“The collaborative spirit of partnership that characterised our relationship disappeared when MegaGen’s owners initiated arbitration. This and the corresponding long delay are not in the interest of either company and together with other recent developments make the business case unattractive,” explained Straumann CEO Marco Gadola.

“Due to the urgent need to expand in the fast-growing non-premium segment in China, India, Russia and Eastern Europe, we have invested in strong partners like Anthogyr, Equinox Medentika and Zinedent—in addition to Neodent. The Straumann Group brand, our shared technology platform and global network offer them considerable leverage and we are very excited about the opportunities that our partnership with them is creating. Strategically, there is no longer a compelling need for a collaboration with MegaGen,” he added.

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