Huobi is set to acquire a public firm in Hong Kong, in a deal estimated to be worth $77 million. The completion of the agreement will make Huobi go public through a reverse takeover.
Huobi Interested in Acquiring Public Firm
As per the shareholding disclosure filed by Pantronic with the Hong Kong stock exchange on August 21, 2018, the firm is transferring 221 million of its ordinary shares to Li Lin, the chairman of Huobi cryptocurrency exchange
The proposed shareholder’s filing with the HK Stock Exchange will grant Li Lin a 73.73 percent share of Pantronic Holdings. This will make him the largest shareholder in the firm. The deal is priced at HK$2.72 (or $0.35) in average per share totaling $77 Million.
The news of the transfer of Pantronic’s share to the Huobi CEO, Li Lin was first reported by Gelonghui, a Chinese financial media outlet on the 27th of August. The news caused an increase in the value of the Huobi cryptocurrency assets. An immediate increase of 8 percent followed by a six percent gain over the period of 24 hours.
The proposed deal will make Huobi go public with the concept of a reverse takeover. The deal is yet to be completed, but the advantages of the acquisition are already evident for Huobi exchange with an increase in the price of their tokens. The acquisition will bring the cryptocurrency firm into the mainstream public sector.
Huobi is yet to make any official release on the acquisition, the reason being the deal is yet to be approved.
Meanwhile, Pantronic is already preparing for an eventual takeover and a merger with Huobi, as the firm has ceased the trading of its share on the Hong Kong Stock Exchange Market since August 22. The firm stated that the trading of its share would stop “pending the release of an announcement relating to a possible offer to be made … on Takeovers and Mergers, which is inside information in nature.”
The Pantronic Holding and Huobi Exchange
Pantronics is California based electronic producing firm established in 1990. The company went public in 2016.
Huobi is a Chinese cryptocurrency exchange, based in Singapore, and has spread its tentacles into other countries. Recently the firm started a partnership with five firms to launch five different exchange in the Philippines, Russia, Taiwan, Indonesia, and Canada. The partnership was enhanced through its cloud platform.