Value Convergence Holdings Limited of Hong Kong signed a memorandum of understanding (MOU) with BTCC Pool Limited for the acquisition of a 49% of its Bitcoin (BTC) mining pool shares. In the document, dated June 24th, the purchase price was set at 147 million Hong Kong dollars (HKD), equivalent to about $19 million.
The memorandum of understanding is not legally binding, as it makes it clear that its terms are subject to negotiation between the parties and the proposed acquisition may or may not materialize. However, some considerations are detailed, such as that the entire share package is expected to be settled through a combination of cash and shares.
Also, 30 million Hong Kong Dollars has been set aside as a “Guarantee of Profit” for Value Convergence for one year. That implies that BTCC Pool Limited will have to compensate the buyer if its profits fall below this figure.
BTCC sold 49% of its Bitcoin (BTC) mining pool shares to Hong Kong-based Value Convergence Holdings Limited
The buying firm, Value Convergence (VC) Holdings Limited, is an investment group operating in the financial services area in Hong Kong and listed on the Hong Kong Stock Exchange. VC has decided to enter the cryptocurrency world with this acquisition proposal, which it carries out through one of its subsidiaries called Initial Honour Limited.
BTCC, created in 2011, includes among its activities different areas of the crypto ecosystem, offering a cryptocurrency wallet, the Mobi wallet, a crypto exchange platform bureau, and the Bitcoin (BTC) mining pool which is currently under negotiation.
Also noteworthy, in September 2017, BTCC had to close operations after the strict prohibitions implemented in China on the cryptocurrencies market, which forced the company to move its operations out of the Asian country. Subsequently, at the end of January this year, the acquisition of the entire BTCC group by an unidentified Hong Kong investment firm was announced.