Huobi Reverse Takeover Public Firm
According to the JRJ.com, Huobi, the well-known cryptocurrency exchange platform wants to become the largest shareholder of a company that is publicly listed in Hong Kong.
“A reverse takeover (RTO) is a type of merger that private companies engage in to become publicly traded without resorting to an initial public offering (IPO). Initially, the private company buys enough shares to control a publicly traded company. The private company’s shareholder then exchanges its shares in the private company for shares in the public company. At this point, the private company has effectively become a publicly traded company.”
Huobi reportedly has acquired a 73.73% stake in Pantronics Holdings Ltd, making it the controller of an electrical and electronic appliance manufacturer.
Pantronics is an electronic manufacturing services provider, established in 1990 and marketed in Hong Kong in 2016. They have not yet officially announced the completion of the transaction or the possible restructuring of the company.
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