The intended purchase of a Tokyo Stock Exchange-listed company by a Hong Kong-based cryptocurrency firm seems to be going bad.
The Tokyo Stock Exchange (TSE) entertains foreign firms entering the Japanese market except if they are cryptocurrency firms.
On Sunday, the exchange operator according to Nikkei seems to be having difficulty regarding the forthcoming acquisition of Beat Holdings, a company listed on its bourse by Noah Ark Technologies, a Hong Kong company allegedly planning to launch cryptocurrency exchanges in Japan and other jurisdictions addition to launching an ICO.
Additionally, Noah Ark suggested that the company release new shares and open up its acquisition rights to allow the latter have 50 percent voting rights in Beat, a company registered in the Cayman Islands with a priority on purchasing intellectual properties (IPS) and healthcare. Presently, Beat has a market cap of 7.3 billion yen ($66 million) while trading on the TSE’s second section for mid-sized firms.
The Hong-Kong company wants to make the purchase to be able to launch crypto exchanges in ‘Japan, the U.S., China and some European markets, including securing about $1 billion’ through an ICO that will see the company issue its ‘Noah Coin’, a piece from the report stated.
Even though the TSE cannot stop the acquisition, it is said to be troubled at the progress made. A TSE official noted that the bourse felt “troubled, to be honest” by the proceedings as it tries as much as possible to stay away from the cryptocurrency sector which it considers lacks investor protection. The report goes on to state that Noah is yet to be approved as a crypto exchange operator in Japan by authorities, even though it is not certain if the company has officially applied.
Beat and its shareholders also fighting back Noah Ark’s intended acquisition as Beat CEO Lian Yin Hanh noted that Noah Ark is trying to purchase its way into the TSE to gain from the credibility of a listing in the TSE, Asia’ largest stock exchange operator. Lian noted that Noah would possibly launch an ICO in Singapore or Hong Kong markets where Beat is already existing.
At present, Noah is Beat’s biggest shareholder with a 15 percent stake and the latter’s management rights are to be decided at a shareholders’ meeting in September.