Robinhood will pay less than half of initial bid for crypto firm Ziglu

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Nasdaq-listed financial services platform Robinhood Markets Inc has lowered its bid on the UK-based company crypto-fintech company, Ziglu in light of the current realities of the digital currency ecosystem.

Interest in Ziglu was first revealed in April when the US-based brokerage app unveiled a $170 million bid to take ownership of the startup.

Robinhood has amended its offer and is offering $72.5m representing a share price of £28.29, less than half of its original offer. While this new offer will result in losses for some of Ziglu’s investors, chief executive Mark Hipperson claimed that the company’s board has already approved the new offer.

He explained that if Robinhood terminated the existing Sale and Purchase Agreement (SPA), the company would find itself in an “extremely difficult and undercapitalized market for the period ahead.”

“The board spent a lot of time talking with Robinhood’s CEO and management team to negotiate and improve the terms of their revised offer. Based on these discussions and other considerations, we believe the revised proposal … is the best and only reasonable path for the company,” Hipperson said.

Robinhood’s decision to reduce its takeover bid for Ziglu was influenced by the current market situation, which has revalued most companies by around 50-90%. With its initial failure to break into the UK around two years ago, Ziglu’s reliance on regulatory support, customer base and one-stop solutions represents Robinhood’s best bet to expand its footprint in the UK.

It is unclear when the new deal will be finalized. However, the new offer submitted by Robinhood is obvious, the company is enthusiastic, according to CEO Vlad Tenev, to “work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe”.

Image source: Shutterstock

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