One of the major bitcoin trading platform – Huobi – reportedly acquires the majority stake in Pantronics Holdings.
According to the available data, the deal represents a reverse takeover transaction, which means that non-public company acquires public company avoiding IPO and complicated regulation.
As a result, in the case of a successful contract, Huobi will be able to appear in the stock exchange.
The Hong Kong Stock Exchange reported that Pantronics Holdings will transfer 73.73% stake (221 million ordinary shares) to Huobi Group's Chairman Li Lin. The contract price is estimated at around $77 million.
Notably, Pantronics Holdings stopped trading shares on the exchange on August 22 given possible offer under the Rule 26 of the Hong Kong Codes on Takeovers and Mergers.
At the same time, Li Lin commented that reports about the possible acquisition are just rumours citing that Huobi is yet to fully comply with the global regulation.
Pantronics Holdings was listed on the Hong Kong Stock Exchange in 2016.
In addition, Bitmain, Canaan and Egang Internationa that produce crypto mining facilities also intend to appear on Hong Kong exchange, but via IPO.
Meanwhile, the exchange was earlier said to work on new tougher rules against reverse IPO striving to improve the market and the quality of listed companies, as reported the media.