The world’s third largest cryptocurrency exchange by market capitalization, Huobi, became the leading shareholder of a Hong Kong-based public firm.
Huobi Group has concluded an acquisition deal with Pantronics Holdings of 199 million shares. The operation was realized via its two subsidiaries – Huobi Capital and Huobi Universal.
Following this deal, Li Lin, the chairman of Huobi Group and controller of the two subsidiaries, now holds 66.26 % of Pantronics, making him the leading shareholder of the Chinese investment holding company.
The collaboration could offer Huobi the green light to enter a secondary financial space. According to the companies, the purchase was made at a price of HK $ 2.72 (or $ 0.35) per share, summing around $ 70 million.
As reported by media this month, the cryptocurrency exchange giant intended to acquire 73.73% of firm’s shares, costing it a total of $ 77 million. Due to several reasons, Pantronics Holdings announced on August 28th the contract amendment.
Asked by the media, a representative of Huobi Group has refused to provide more details on the grounds that there is no authorization to do this.
Huobi Capital is integrally owned by Li Lin
According to the company’s latest document, Huobi Capital is integrally owned by Li Lin, while Huobi Universal’s top three shareholders are Techwealth (58.44 %), Sequoia Capital IV CV (23.32 %) and Zhen Partners Fund I (7.46 %).
Following the announcement, the crypto exchange’s native token, Huobi Token, registered an 8% growth, according to CoinMarketCap.
Singaporean cryptocurrency exchange is not the first private business to submit for Initial Public Offering (IPOs) in Hong Kong. BTC miner makers Canaan Creative and Ebang have also looked after IPO.