The 400 billion Won ($333 million) takeover of South Korean exchange Bithumb is on the brink of collapse, according to local media outlet the Korea Herald.
The planned takeover by BK Group, a plastic surgery medical company, has already been delayed twice this year after the deal came to light last October.
Speculation has been intensifying over BK Group’s financial situation as they have failed to provide full payment, despite making a $100 million down payment last year.
The Singapore-based plastic surgery company had a 57.41% takeover bid from Dual Industrial collapse, worth 235.7 billion Won, collapse earlier this year. Reports suggested that this capital was required for the purchase of Bithumb.
However, Cornerstone Networks executive Choo Yoon-hyeong denied claims that the takeover deal was on the rocks after he reportedly funded BK Group with 450 billion Won.
Bithumb was recently acquired by Singapore-based Bk Global Consortium led by a plastic surgeon. The group inked a deal with BTC Korea Holdings, Bithumb’s largest shareholder at the time with 75.99 percent interest, to buy a controlling stake in the exchange.
— Garlic Chives (@ChivesGarlic) November 3, 2018
“The deal is proceeding smoothly, and we’re working on details with BTC Holdings” he said, before stating that the acquisition will be completed “soon”.
Bithumb is currently the largest cryptocurrency exchange in South Korea, facilitating around $250 million worth of trade volume on a daily basis.
A company spokesperson said that as management won’t change, the potential of the deal collapsing won’t have any impact on the exchange and platform itself.
“Bithumb has stable management, so there won’t be any impact should the deal collapse,” he said.
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