The Tokyo Stock Exchange (TSE) is concerned about the acquisition of a TSE-listed company by a cryptocurrency firm based in Hong Kong. While the TSE has been receptive to foreign firms who want to enter the Japanese market, it has been less welcoming of cryptocurrency firms.
According to Japanese news agency Nikkei on Sunday, the TSE is anxious about the prospective takeover of TSE-listed Beat Holdings by Noah Ark Technologies. Noah Ark is reportedly looking to launch crypto exchanges in Japan and other places, and is reportedly planning to launch an ICO.
Noah Ark proposed in June that the TSE-listed Beat Holdings change its name to include Noah Ark’s token cryptocurrency, “Noah Coin.”
Noah Ark also proposed that the company open up its acquisition rights and issue additional shares to enable Noah Ark gain 50% voting rights in Beat. Beat Holdings is registered in the Cayman Islands. Its focus is on the healthcare industry, and the acquisition of intellectual property (IP). Currently, Beat sees a 7.3 billion yen ($66 million) market cap.
Noah Ark is considering the acquisition in order to launch crypto exchanges in “Japan, the U.S., China and some European markets, as well as secure about $1 billion’ through an ICO that will see the company release its ‘Noah Coin’” according to an excerpt from the report.
The TSE cannot stop the purchase, but officials are reportedly upset about the proceedings. One TSE official told the Nikkei that the bourse felt “troubled, to be honest” by the purchase. The TSE continues to shun the cryptocurrency sector, which it perceives is seriously lacking in investor protection. Noah has not been approved as a cryptocurrency exchange operator in Japan; although it is not clear whether the company has even formally applied.
From the Beat perspective, the company and its shareholders are resisting Noah Ark’s planned takeover. Beat CEO Lian Yin Hanh says that Noah ARk is only seeking to buy its way into the TSE in order to benefit from the perceived credibility of having a listing in the TSE, which is Asia’s largest stock exchange operator.
Lian told the Nikkei that Noah will probably launch an ICO in Singapore or Hong Kong, markets in which Beat already has an established presence. Currently, Noah is Beat’s biggest shareholder – with a 15% share. Beat’s management rights are set to be decided at a September shareholders’ meeting.