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Cryptocurrency currency Huobi has acquired a controlling stake in Pantronics Holdings Ltd based in Hong Kong, according to an official announcement from the Hong Kong Stock Exchange (HKEx). As reported by the Cointelegraph, Pantronics, owned by HKEx, an electronics product manufacturing company, has stopped trading in the exchange main board on August 22, citing "the possibility of an offer to be made based on Rule 26 of the Hong Kong Code on Takeover and Merger. " Indications at the time suggested Huobi had acquired 73.73 percent of the company. The official HKEx announcement explained that Huobi, along with the Fission Capital blockchain service provider platform, acquired a total of 71.67 percent of shares in Pantronics - with details of 66.26 percent and 5.41 percent. While the acquisition of Huobi has a real advantage as a reverse initial public offering (IPO) - Sandy Peng, partner at Fission Capital, told the Cointelegraph in a statement that "for now is a direct acquisition ahead as stated in the announcement Huobi intends to start a new blockchain-related business using this entity. "Peng added that: "Fisi has many years of experience in the HK Capital market. We participated in this acquisition with Huobi and believe that the rich Huobi experience in this sector, the institutional and regulated international platform created by this new vehicle will be an ideal launching platform for international businesses and any related institutions that Huobi might learn at future. " Peng considered that HKex's official disclosure was "by way of an announcement from Huobi," proposing that "the difference is not important." But Huobi declined to comment on disclosure in response to a request from the Cointelegraph. Although Peng has denied the characterization of the agreement as an inverse takeover, the route can be wise for privately held companies, enabling them to avoid the long and complex process of going public through direct acquisition of entities held by the public. After completing the agreement, the buyer gets automatic inclusion on the stock exchange. Mike Novogratz is one of the high-profile examples of the crypto space that chose the route to secure a listing on Toronto's TSX Venture Exchange for its merchant bank that focuses on crypto, Galaxy Digital.
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