Rumor of finding FI before the balance payment of Bithumb takeover in September
How will the balance payment scenario of CEO Kim, Byeonggeon, who is trying to take over the cryptocurrency exchange platform Bithumb? The additional balance payment left for the takeover for Kim is around 5 trillion KRW. If the investment of Dual Industrial with whom he entered into a contract for the Bithumb acquisition is finished, the fund requirement will be shrunk to 3 trillion KRW.
The market highly expects Kim to fund-raise to conduct a capital increase of SG BK Group PTE. LTD.(hereinafter, SG BK Group). SG BK Group is the holding company of the corporate group he has incorporated in Singapore and governing BK Consortium which is established for the Bithumb takeover. If Kim uses the fund for the capital increase of SG BK Group, it will finish the acquisition as well as strengthen its governing power.
Kim has announced to purchase 400 million USD of BTC Holding Company’s stock, which is the largest shareholder of Bithumb. Four hundred million USD would amount to 50% of the undivided shares plus one. He has purchased 100 billion USD of stocks in January this year and promised to pay the balance by February. However, Kim postponed the balance payment to September. Also, the balance amount has expanded because as he now plans to purchase 70% of the stocks. Proportionately speaking, if 50% of BTC Holding Company shares is 400 million USD, then 20% will be 160 million USD. In other words, the amount Kim has to pay within the upcoming September is 460 million USD, which is 5.421 trillion KRW.
As the payment comes due, there are rumors about Kim’s fundraising. Anything revealed up until now is the capital increase by the domestic vehicle part manufacturer, Dual Industrial. Dual Industrial has announced the capital increase by funding 23.57 billion KRW to the SG BK Group. SG BK Group is a parent company of BTHMB Holdings PTE. LTD(hereinafter, BTHMB Holdings) which CEO Kim has established for the Bithumb takeover. The BTHMB Holdings is also known as BK Consortium. Dual Industrial is participating in the Bithumb acquisition by funding the SG BK Group’s capital increase.
Even with the Dual Industrial’s funding, Kim may require additional 30.64 billion KRW to close the Bithumb deal. CEO Kim’s moves relating to the financing are noticed in many places. Various possibilities are suggested, and it includes alluring another investment like Dual Industrial. A person in concern of blockchain business said that Kim is in discussion with a domestic PEF(Private Equity Fund). It seems that he is continuously contacting the law firms and consulting firms as well to inquire about the fundraising.
There are rumors about Chinese funds too. CEO Kim is developing his blockchain project in China. The independent cryptocurrency BXA Token is listed in the Chinese cryptocurrency exchange platform, and he also is operating the plastic surgery business there.
However, there is a higher possibility of Kim fundraising on his own than receiving another investor’s share investment as for the capital increase. This idea comes from the governing structure of the relevant companies. SG BK Group is governing the corporate group which Kim has established in Singapore. Kim is governing the corporate group by possessing 100% of the group’s shares. If Dual Industrial finishes the capital increase, it will be the largest shareholder with 57.41% of the undivided shares, and this may weaken the governing power of Kim on the corporate group he incorporated in Singapore.
A person in concern of the IB Business said that the relation between Kim and Dual Industrial seems amicable. However, Kim would not want to be the second-largest shareholder. Only Kim’s direct fund to the SG BK Group’s capital increase can maintain his governing power to the corporate group in Singapore.
Kim Byungyun (2019.07.22.) 김병건 회장, SG BK 추가 투자자 구할까
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