South Korean cryptocurrency exchange Bithumb’s existing acquisition deal could fall apart due to difficulties with payments, The Korea Herald reported on 30 September.
Almost a year ago, BK Global Consortium made a deal to acquire 51% of the shares that BTC Korean Holdings has in the cryptocurrency exchange for 400 billion won (around $334 million).
According to today’s report, BK Global is now expected to default the payments for the deal, as it has reportedly only made a $100 million down payment for the past year.
The report also states that sources close to the matter have said that BK Global pushed back on this year’s April deadline for purchasing the shares, on the condition it increases the shares it’s going to buy from BTC Holding from 51% to 70%.
The report also states that, to this day the payment has not been made, and that BK Global once again missed its deadline for the final payment, stoking suspicions about the company’s ability to provide the funds.
In order to raise the funds needed, the company was reportedly planning to conduct a token offering, but allegedly put an end to that plan due to the crypto market downturn.
Now it seems that the company is looking for various partnerships and buyouts in order to secure the needed capital. The report claims that in July, Dual Industrial had decided to buy a 57% stake in BK Group, a move for BK to finance its Bithumb acquisition, but later withdrew that plan.
The report now claims that Cho Yoon-hyeong, who owns a large stake in electronic equipment manufacturer Cornerstone, is rumored to help BK Global with their acquisition by contributing close to $125 million from his personal assets.