South Korean Crypto Exchange Bithumb might be acquired by overseas investors due to alleged difficulties with payments in its acquisition.
BK Global Consortium, headed by one of South Korea’s lead plastic surgeons closed a deal in Oct 2018 to acquire 50% plus one share of BTC Holding Co.
However, on Sept 30th, local news agency, Yonhap reported that BK Global is now expected to default on the payments for the deal, ‘having struggled with even the initial down payment of $100 million.’
Business will continue for Bithumb
The acquisition deadline, when approached in April ‘BK Global, opted to increase its stake in BTC Holding to 70% in lieu of paying its outstanding balance.’
The payment has been postponed till this day, raising suspicions whether the company would be able to provide the funds.
According to reports, BK Global had planned to conduct ‘a token offering to raise capital for the acquisition’. The plan was scrapped because of the cryptocurrency market downturn.
Official Bithumb representatives reportedly have ‘underscored that any ostensible difficulties with the deal will not affect shareholders, given the exchange continues to operate stably.’
Bithumb representatives added that business would continue even if the acquisition deal is not successful.
Interest from Chinese and American investors
The current situation of Bithumb has attracted interest from unnamed Chinese and American investors who might be interested in acquiring Bithumb.
A legal dispute of $100 million dollars down payment would occur if BK Global terminate the deal and default on the payments.
CoinMarketCap reports that Bithumb is currently the world’s 43rd largest exchange according to daily traded volume.
Bithumb announced recently the formation of a new committee that will suggest which cryptocurrencies are eligible for its trading platform.