이 기사는 2019년 10월 02일 08:00 thebell 에 표출된 기사입니다.

The process for the sale of a controlling stake in Medit is being accelerated.

According to investment banking industry sources on September 27, four shortlisted bidders for South Korea's 3D scanning venture have started the management interview on Monday. Among the four are Kohlberg Kravis Roberts (KKR), Carlyle Group, Bain Capital, and Unison Capital, all of which are global private equity firms.

Members of senior management including Jang Min-ho, founder and CEO of Medit, will attend the interview. The company plans to select the most preferred bidder and sign the stock purchase agreement (SPA) within October.

Based on this schedule, the bidders need to finish the valuation process and make decision on the purchase until mid-October. The question in focus is which bidder will submit the final bid exceeding the seller's desired price.

Medit reportedly suggested 800 billion won for the transaction price. Considering the company's earnings before interest, tax, depreciation and amortization (EBITDA) estimated to be 30 billion won and zero net borrowing, the EBITDA multiple used for the above price is around 27x, which is much higher than its peers'.

Some market watchers view that higher valuation is possible as the company's growth potential looks promising. But others say that the private equity firms, who are strategic buyers, would not bet on a target with the EBITDA multiple exceeding 20x. The bidders reportedly said that it is too early to talk about the proper value of the target.

Medit is emphasizing that the company, with the candidates' overseas resources added, certainly has room to grow fast. Indeed, the scanner maker has grown to the third-largest in the global 3D dental scanner market since it first launched its product in 2008. Last year, the firm's revenue increased 90 percent year-on-year to 33 billion won, and the management is expecting its revenue to exceed 60 billion won this year.

The amount of shares to purchase is one of the key points of the deal. Medit is planning to sell a controlling stake in the company but has not decided yet the exact proportion. So, reaching agreement on this issue between the seller and bidder could be an important factor.

Whether the bidder can work in harmony with the existing management is also considered important. Medit CEO Jang will remain after the sale to jointly manage the company. So far, four bidders are considered equally competitive. Market observers said bidders presenting concrete plans for mid- and long-term growth would be more appealing to the seller.

(By reporter Kim Hye-ran)