Huobi Reverse Takeover Public Firm

Marcin Iwański
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According to the, Huobi, the well-known cryptocurrency exchange platform wants to become the largest shareholder of a company that is publicly listed in Hong Kong. Once this process is complete, Huobi will be opened to the public by the reverse takeover.

“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.

According to shareholder information provided by Pantronics Holdings last week, the company is handing over more than 221 million of its shares to the CEO of the Huobi Group through several listed companies.

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.

Pantronics suspended trading of its shares on the Hong Kong Stock Exchange’s (HKEx) on 22 August 2018. According to the company, this was pending the publication of a notice of a possible bid for the organization, which could be related to acquisitions and mergers, which is confidential information.

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