January 16, 2021

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Impediment hits Bithumb’s acquisition deal

BK Global Consortium, a Singapore based company acquired Bithumb which is a well-known South Korean cryptocurrency exchange by buying a controlling share from the exchange about a year ago.
The consortium was led by the plastic surgeon, Kim Byung-gun who reportedly bought 50% plus one share of the exchange’s Bitcoin holding company for about 400 billion won, which amounted to $354.09 million.

It was reported by a news agency called Yonhap in a recent update that the sale of South Korean’s largest crypto exchanges, Bithumb was “virtually ineffective.”

As reported, the consortium hadn’t paid the entire money of acquiring the shares of the exchange. They paid an initial downpayment amount of 120 million won which is about 100 million dollars, after which the company deferred payments.

To elaborate, BK Consortium had extended the deadline for the payment since April, implying that it would increase its stake in BTC Holding Company to 70% instead of paying off the remaining balance.

Bithumb, however, seemed to be unaffected as it was revealed by an official from the exchange that the termination of the acquisition contract would not impact the company as it has been running stably from the beginning.

The official said,

“We do not know that the sale is a major shareholder problem.”

According to a local news report, it was also stated that the exchange may most likely to be sold to foreign investors in the merger and acquisition market.

There might be a possible dispute over BK Consortium downpayment only if the consortium does not pay the remaining balance and if Bithumb is sold to other investors.

Potential investors from China and America have shown interest in acquiring Bithumb.

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