Huobi Exchange Planning to Acquire Hong Kong Based Electronics Firm for $77 Million
Popular cryptocurrency exchange Huobi is reportedly seeking to purchase a majority share of a Hong Kong-based electronics manufacturing service provider in a $77 million dollar acquisition. Coindesk reports that if completed, the deal could lead to Huobi going public on the Hong Kong Stock Exchange via a reverse takeover.
Pantronics Holdings has reveled in a shareholding disclosure report to the Hong Kong Stock Exchange on August 21 that the company is transferring 221 million of its ordinary shares to Huobi Group Chairman Li Lin. Following the transfer, Li will own 73.73 percent of Pantronics, effectively making Huobi the new owner of the company. A representative from Huobi told Coindesk that the exchange is waiting to make a public announcement until the transfer is approved by the Hong Kong Stock Exchange.
“The deal, if approved, could give Huobi the opportunity to take over a public company and thus enter the secondary financial market – a process known as a reverse takeover,” reports Coindesk.
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Huobi Token on The Rise
Following the news, Huobi Token (HT) saw a steep increase in price. A finalized deal will likely continue to drive up Huobi Token’s price, currently valued at $2.32.
Pantronics is an electronics manufacturing service provider established in 1990. The company first went public in 2016. On August 22nd, Pantronics released a public notice stating, “trading in the shares of the Company on the Main Board of The Stock Exchange of Hong Kong Limited will be halted with effect pending the release of an announcement relating to a possible offer to be made.” Further details from Pantronics have yet to be released.
The Hong Kong Stock Exchange continues to serve as a hotbed for cryptocurrency-related activity. Coindesk reports that numerous private cryptocurrency firms are currently applying for public offerings (IPOs) on the Hong Kong Exchange, including Bitcoin mining companies Canaan Creative and Ebang.
Most notably, cryptocurrency mining giant Bitmain is planning to launch their IPO on the Hong Kong Exchange in Q4 2018 or Q1 2019. The Bitmain IPO is suspected to be one of the largest IPOs in history, estimated to be as high as $18 billion at a $50 billion market capitalization.
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