Crypto exchange giant Huobi has completed the purchase of majority shares of Hong Kong-based investment holding company, Patronics Holdings Limited (PHL).
The development will see Huobi take over interest in an aggregate of 215,576,000 Shares, representing approximately 71.67% of the issued Shares as at the date of completing the transaction.
Earlier this month, by the order of the board, PHL Chairman, Simon Nai-cheng Hsu requested the Hong Kong stock exchange to suspend trading of the company’s shares from 9:00 a.m August 22, 2018 this was to enable the parties involved see through the negotiations and transaction processes.
According to the request, this was pending the release of an announcement relating to a possible offer to be made under Rule 26 of the Hong Kong Codes on Takeovers and Mergers, which is inside information in nature.
Having completed the transaction and sealed the deal, a joint announcement has been released by representatives of both parties requesting a resumption in trading of the company shares. The announcement also elaborated the details of the transaction that sees Huobi control majority shares in the multinational company.
Patronics Holdings Limited is principally involved in the manufacturing of power-related and electronics that cuts across different categories of products. The company’s scope also encompasses several subsidiaries that cuts across a number of international boundaries. The subsidiaries include Pantene Industrial Co. Limited, Pantronics International Holdings Limited, Panjet Service Company Limited, among others.
As mentioned above, the reported takeover sees the transfer of more than 215 million of its ordinary shares to Li Lin, the chairman of Huobi Group, via several of the exchange’s subsidiaries. This translates to about 71.67% of the total shares of Patronics Holdings, qualifying Lin as the largest substantial shareholder of the company.
An initial surge in the price of Huobi token shortly after the first public announcement as seen on Coinmarketcap is believed to have been in direct response to the development. However, the token has continued in this trend following the overall short-term recovery of the general token market which sees the leading cryptocurrency cross the $7,000 mark for the first time in several weeks before a retreat today.
On the threshold of this takeover, Huobi is well positioned in the process of launching itself into the secondary financial market. This will be another milestone in the life of one of the leading crypto exchanges existing today.
Patronics has experienced significant growth within the last couple of months. Data from the Financial Times reveal that the company’s stocks trades at a price of 3.08HKD as at the time of writing. This represents a price increase of 152.46 percent in the last one year.
With the takeover by Huobi in a deal that is estimated at $77 million USD, the overall impact on the company’s equity and the exchange’s token remains to be seen.
Featured image from Shutterstock.
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