In its effort to go public through a back-door listing, cryptocurrency exchange Huobi buys a controlling stake in a Hong-Kong-based public listed firm – Pantronics Holdings Ltd. – for a price of $70 million. Pantronics confirmed its acquisition on Wednesday, August 29, saying that the Huobi Group has completed this deal by buying 199 million shares of the company through its two subsidiaries – Huobi Universal and Huobi Capital.

After this acquisition, Huobi Group chairman and the controller of the two subsidiary groups, Li Lin gets a stake of 66% in Pantronics making him as the company’s largest individual shareholder. More importantly, this deal has increased the company’s chances of going public through a back-door listing in the future.

Back-door listing is the process in which a private organization takes an entry into the secondary financial market while taking a controlling stake in the public listed company. The announcement notes that the transactions have been made at a price of HK$2.72 (or $0.35) per share which amounts to a total investment of $70 million.

As per earlier propositions, the Huobi Group was willing to get 73.73 percent of Pantronics ordinary shares which would have cost them a total of $77 million. However, the shareholding disclosures were later amended to reflect the change. A Huobi spokesperson declined to comment saying that they are not authorized to unveil any further information from that which has been already given in the official announcement.

However, the document further gave a sneak peek into the exchange’s corporate structure along with the percentage stake on its investors. The Huobi Capital is completely owned by chairman Li Lin. The largest owner of Huobi Universal is Techwealth with 58.44% stake. Techwealth is an investment company wherein chairman Li has got 89% stake. The other investors of Huobi Universal are Sequoia Capital CV IV (23.32 percent) and Zhen Partners Fund I (7.46 percent).

The post Crypto Exchange Huobi Acquires a Hong Kong-based Public Listed Firm for $70 Million appeared first on CoinSpeaker.

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