Huobi exchange completes $74.7M Pantronics acquisition

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Singapore-based cryptocurrency exchange Huobi has completed its purchase of electronics manufacturing service provider Pantronics Holdings.

According to a filing at the Hong Kong Stock Exchange, where Pantronics is listed, Huobi, along with firm Trinity Gate, purchased 215.6 million Pantronics shares, approximately 71.67% of the company, at HKD2.72 ($0.35), for a total of HKD586.4 million ($74.7 million).

The owner of Trinity Gate, Teng Rongsong, is chairman of blockchain company Fission Digital, based in Hong Kong. According to the terms of the agreement, Huobi will own 199.3 million shares, approximately 66.26% of the company, and Trinity Gate will own 16.3 million shares, approximately 5.41% of total shares.

“[Huobi] is of the view that [Pantronics] is an attractive investment whose current businesses have stable performance with growth potential… [Huobi] and [Huobi founder, Chairman and CEO] Mr. [Leon] Li will utilise their knowledge and experience in the areas of blockchain and financial technology, to develop businesses… in areas that develop and provide technical infrastructure and solutions serving the cryptographic assets trading platform, building tools and marketplace for digital assets, and develop storage solutions for such assets,” the filing read.

Huobi also stated that it was going “to maintain continuity of normal business considerations but will retain the flexibility at any time to consider any options of opportunities which may present themselves.”

The agreement also included the sale of option shares to Trinity Gate worth a total of HKD11.3 million ($1.4 million).

Huobi, the third largest exchange in the world according to daily trading volume, has partnered with HBUS, which last July began offering registration to U.S. residents for the trading of cryptocurrencies.

As part of its expansion plans, Huobi has also partnered with five companies—Yatai International Holding Group from the Philippines, Vnesheconombank from Russia, Chi Fu Group from Taiwan, Asia International Finance Holdings from Indonesia, and Dbank Group from Canada—for the putting up of trading platforms in their respective countries.