Huobi has announced the completion of its purchasing majority shares in the Patronics Holdings Limited (PHL). Patronics Holdings Limited is an investment company based in Hong Kong.
Suspension Of PHL’s Shares Trading
This purchase will see Huobi take control of Patronics Holdings Limited with a total of 215,576,000 Shares, meaning that the crypto exchange giant will have ownership of roughly 71.67% of the overall shares available at the time of the transaction completion.
PHL’s chairman Simon Nai-cheng Hsu, with the blessing of the board of directors, called for the suspension of the company’s shares in the in the Hong Kong Stock Exchange to allow the parties involved to see the true nature of the negotiations and the transfer process.
As stated by the request made to the Hong Kong Stock Exchange, the suspension requested was in relation to pending offer that was expected to be in relation to the Takeovers and Mergers of the Hong Kong Codes Rule 26.
Announcement Of The Completion Of PHL Shares Purchase
Upon the finalization of the transaction, representatives from both parties made a joint announcement on the completion of the deal and requested the Hong Kong Stock Exchange to facilitate the resuming of trading in the company’s shares. The joint announcement made clear the details of the deal that will see Huobi gain control of the majority shares in the investment company.
Patronics Holdings Limited mainly deals in the manufacture of electronics and power related products in a variety of categories. The company also has several subsidiaries in different countries across the world. Some of these subsidiaries are Panjet Service Company Limited, Pantene Industrial Co. Limited and Pantronics International Holdings Limited.
As previously mentioned, the transaction will see over 215 million shares be transferred to the ownership of the Huobi Group’s chairman Li Lin and will be made through the various subsidiaries under the main PHL company umbrella. The 71.67% in ordinary shares have effectively made Lin the majority shareholder of the company.
The Huobi token experienced a significant increase in its price upon the announcement of the finalization of the deal between PHL and Huobi. Although the spike in price was seen as being in response to the announcement, the trend has maintained in the same trajectory as the token market experiences a short recovery with the leading Crypto token breaking through the $7000 mark.
Expansion Of Huobi
The move to takeover PHL has been seen as being in line with the crypto exchange’s plans to get into the financial market. This is yet another milestone for the Crypto exchange which is among the leading ones in the sector.
Patronics has been in a growth trajectory this year, with trusted data showing the prices of its shares have increased by a reported 152.46 percent this year alone. At the time of writing, the stock’s prices were at 3.08HKD.
With the purchase costing Huobi a reported sum of $77 million USD, it is still not clear what the overall financial implications will be for the company.