Huobi, the exchange giant Crypto, has finalized the purchase of majority shares of Hong Kong-based investment holding company Patronics Holdings Limited (PHL).
The development will see Huobi take control of 215,576,000 shares in total, representing approximately 71.67% of the shares issued on the completion date of the transaction.
Earlier this month, by order of the Board, PHL Chairman Simon Nai-cheng Hsu asked the Hong Kong Stock Exchange to suspend trading of the company's shares from 22:00 on 22 August 2018 negotiations. and the transaction processes.
According to the request, he was awaiting the publication of an announcement regarding a possible offer under Rule 26 of the Hong Kong Acquisition and Merger Codes, which is inherently inside information.
Once the transaction was completed and the transaction sealed, representatives of both parties issued a joint announcement requesting the resumption of trading in the company's shares. The announcement also elaborated the details of the transaction which provides that Huobi controls the majority of the shares of the multinational.
Patronics Holdings Limited is primarily involved in the manufacturing of energy related products and electronics, which cover different product categories. The scope of the company also includes several subsidiaries that cross several international borders. Subsidiaries include Pantene Industrial Co. Limited, Pantronics International Holdings Limited and Panjet Service Company Limited.
As mentioned above, the announced buyout provides for the transfer of more than 215 million common shares to Li Lin, chairman of the Huobi group, through several subsidiaries of the stock exchange. This represents approximately 71.67% of the total shares of Patronics Holdings, qualifying Lin as the largest shareholder of the company.
An initial rise in the price of the Huobi token shortly after the first public announcement, as seen on Coinmarketcap, would have been a direct response to development. However, the token continued in this trend after the global short-term general market recovery of chips, which sees the main encrypted currency break the $ 7,000 mark for the first time in several weeks before a retirement today.
At the threshold of this recovery, Huobi is well positioned to embark on the secondary financial market. This will be another important step in the life of one of the main crypto-exchanges existing today.
Patronics has experienced significant growth in recent months. Data from the Financial Times reveals that the company's shares are trading at a price of 3.08HKD at the time of writing. This represents a price increase of 152.46% over the last year.
With the takeover by Huobi in an agreement estimated at US $ 77 million, the overall impact on the equity of the company and the token of the stock market remains to be seen.