According to an official announcement from the Hong Kong Stock Exchange (HKEx), Huobi has acquired a controlling stock interest in Pantronics Holdings Ltd. The latter is an electronic product manufacturing company.
Huobi now has a 66.26% stake in Pantronics. This move indicates that Huobi is planning to start a new blockchain-related business using their acquisition. Huobi is currently the 4th largest crypto exchange in the world by daily trading volumes.
The deal is characterized as a reverse takeover, or reverse IPO, by some in the industry. This strategy may be used by privately held firms that want to be included on the stock exchange. The usual process of going public via direct acquisition of a publicly-held company is lengthy and complex. The most notable example of a company using this strategy is Mike Novogratz’s bank Galaxy Digital, which secured a listing on Toronto’s TSX Venture Exchange.