Mon Mar 31, 2014 6:18am EDT
<span id="articleText"/>* Spends $30 million on convertible bonds in MegaGen
<span id="midArticle_0"/>* Bonds include option to obtain a majority stake
<span id="midArticle_1"/>* Part of drive to expand in growing, low-cost implants
<span id="midArticle_2"/>ZURICH, March 31 (Reuters) - Swiss dental implants maker Straumann has bought $30 million of bonds that can convert into shares of South Korean company MegaGen, as part of a drive to strengthen its position in the growing market for low-priced implants.
<span id="midArticle_3"/>The world's largest maker of dental implants said on Monday the bonds, which bear 3 percent annual interest, included the option to be converted into shares in 2016, as well as an option to obtain a majority stake in MegaGen.
<span id="midArticle_4"/>Faced with sluggish demand for premium implants in Europe as cash-strapped consumers cut back on expensive dental treatment, Straumann is expanding in the lower priced market, which makes up roughly 60 percent of industry volumes.
<span id="midArticle_5"/>Chief Executive Marco Gadola said last year the company had up to 400 million Swiss francs ($450 million) available to spend on buying low-cost players in growing markets. The Basel-based firm already owns a 49 percent stake in Brazil's Neodent.
<span id="midArticle_6"/>"Some dentists are willing to pay for lower standards than those offered by premium brands, which has fuelled growth in the value segment," Gadola said in a statement on Monday.
<span id="midArticle_7"/>"To address their requirements and to capture this significant business opportunity, we are building a platform of value brands, in which MegaGen will have an important role."
<span id="midArticle_8"/>Founded in 2002, privately-owned MegaGen is a fast-growing dental implants maker with sales volumes of more than 30 million last year, of which two thirds were in Asia/Pacific, Straumann said.
<span id="midArticle_9"/>The Daegu-based company will spend the proceeds of the bonds on expanding its domestic and international implant business as well as promoting its digital dentistry platform.
<span id="midArticle_10"/>By 0945 GMT, shares in Straumann were trading up 1.1 percent at 191.00 Swiss francs, outperforming a 0.3 percent firmer European healthcare sector index.
<span id="midArticle_11"/>($1 = 0.8870 Swiss Francs) (Reporting by Caroline Copley; Editing by Mark Potter)
<span id="midArticle_12"/>
<span id="articleText"/>* Spends $30 million on convertible bonds in MegaGen
<span id="midArticle_0"/>* Bonds include option to obtain a majority stake
<span id="midArticle_1"/>* Part of drive to expand in growing, low-cost implants
<span id="midArticle_2"/>ZURICH, March 31 (Reuters) - Swiss dental implants maker Straumann has bought $30 million of bonds that can convert into shares of South Korean company MegaGen, as part of a drive to strengthen its position in the growing market for low-priced implants.
<span id="midArticle_3"/>The world's largest maker of dental implants said on Monday the bonds, which bear 3 percent annual interest, included the option to be converted into shares in 2016, as well as an option to obtain a majority stake in MegaGen.
<span id="midArticle_4"/>Faced with sluggish demand for premium implants in Europe as cash-strapped consumers cut back on expensive dental treatment, Straumann is expanding in the lower priced market, which makes up roughly 60 percent of industry volumes.
<span id="midArticle_5"/>Chief Executive Marco Gadola said last year the company had up to 400 million Swiss francs ($450 million) available to spend on buying low-cost players in growing markets. The Basel-based firm already owns a 49 percent stake in Brazil's Neodent.
<span id="midArticle_6"/>"Some dentists are willing to pay for lower standards than those offered by premium brands, which has fuelled growth in the value segment," Gadola said in a statement on Monday.
<span id="midArticle_7"/>"To address their requirements and to capture this significant business opportunity, we are building a platform of value brands, in which MegaGen will have an important role."
<span id="midArticle_8"/>Founded in 2002, privately-owned MegaGen is a fast-growing dental implants maker with sales volumes of more than 30 million last year, of which two thirds were in Asia/Pacific, Straumann said.
<span id="midArticle_9"/>The Daegu-based company will spend the proceeds of the bonds on expanding its domestic and international implant business as well as promoting its digital dentistry platform.
<span id="midArticle_10"/>By 0945 GMT, shares in Straumann were trading up 1.1 percent at 191.00 Swiss francs, outperforming a 0.3 percent firmer European healthcare sector index.
<span id="midArticle_11"/>($1 = 0.8870 Swiss Francs) (Reporting by Caroline Copley; Editing by Mark Potter)
<span id="midArticle_12"/>
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