이 기사는 2019년 10월 15일 08:00 thebell 에 표출된 기사입니다.

South Korea's 3D scanning venture, Medit will hold its final bidding round on October 25.

According to investment banking industry sources on October 8, the sell- side of Medit is planning to close the final bids on October 25, and select the preferred bidder and sign an agreement within this month. As Bain Capital walked away from the deal, the battle will likely be among three bidders, Carlyle Group, Kohlberg Kravis Roberts (KKR), and Unison Capital.

The market is paying close attention to potential candidates, as the company has garnered strong interests from global private equity firms even before the preliminary bids. The market watchers view the outcome of this deal will depend on the final bidding price that bidders will submit, but importance of non-price factors can't be ruled out.

The bidders are currently conducting due diligence and negotiating details of terms and conditions with the sell-side. So far, all of the three bidders are reportedly willing to reach the finish line. However, it is said most of them have not made decisions whether they can submit the final bid exceeding the seller's desired price (enterprise value of about 600 billion won). Some bidders say the desired price is too high. In April when domestic private equity firm Premier Partners and Ryukyung PSG Asset Management purchased a 15 percent stake in Medit, they valued the company at 400 billion won. Considering this is the management rights deal, many say it is hard to value the company much higher in just six months.

Some market watchers view that higher valuation is possible as the company's growth potential looks promising. Global 3D dental scanner market is still in the early stage with usage rate of about five percent. The sell-side anticipates the sale of a controlling stake to be the stepping stone to gain strong growth momentum, especially expanding its overseas sales.

Bidders see Medits' products are competitive in the global market and the barriers to entry in the segment are high. The industry views Medit highly likely to be sold to global medical company when the buyer exits in a few years. All of the above indicates the possibility that some bidders may submit the final bid that matches the seller's desired price.

If three candidates' prices fall in the same range, non-price factors can play a part. Whether the bidder can work in harmony with the existing management is considered important. Chang Min-ho, founder and CEO of Medit will remain after the sale to jointly manage the company, holding as high as 49 percent stake. With global dental scanner market growing rapidly and market competition expected to get fiercer, bidders presenting concrete plans for overseas markets would be more appealing to the seller.

Carlyle Group and KKR have continuously invested in the global healthcare industry. Market watchers view that they have a good understanding of the global market mechanism and a variety of strategies and ideas to increase enterprise value, such as add-on acquisition. Unison Capital has worked on expanding distribution channels and increasing brand value of investee companies.

(By reporter Kim Hye-ran)