A deal that would see leading South Korean cryptocurrency exchange Bithumb sell most of its stake for roughly 400 billion won, worth around $333 million, is reportedly on the verge of falling apart.
Last year the exchange’s parent company, BTC Korea Holdings, agreed to sell 50% plus one share of its 76% stake in the exchange to the Singapore-based BK Global Consortium, in a deal that was supposed to be completed in February but ended up being extended twice.
According to local news outlet The Investor, citing industry sources, the deal was extended as the BK Group led by plastic surgeon Dr. Kim Byung-gun pushed back the deadline to make the full payment. At the time of the deal it reportedly made a down payment of $100 million.
The news outlet reports the BK Group originally planned to get more funds by issuing its own cryptocurrency, but the plan was affected by the cryptocurrency market’s poor performance last year. Earlier this year, in July, Dual Industrial announced plans to buy 57.41% stake in the BK Group for 235.7 billion won (around $196 million).
Bithumb Global Comes out of Beta Aiming to Reach a Wider Audience https://t.co/Qdc2XoLFkU #Bithumb #SouthKorea #Crypto #Cryptocurrency
— CryptoGlobe (@CryptoGlobeInfo) September 26, 2019
The plan was, however, withdrawn in August. Earlier in September the group found another investor, Cho Yoon-hyeong who owns a 100% stake in Paradise Point, the largest shareholder of electronic education equipment manufacturer Cornerstone. Cho is said to have participated in a capital increase of BK Group.
Speaking to the media, he stated:
The deal is proceeding smoothly, and we’re working on details with BTC Holdings.
A Bithumb representative claimed the exchange has stable management, and that there won’t be any impact on it should the deal fall apart.
Featured image via Pixabay.