In the latest move to acquire United Kingdom-based crypto fintech business Ziglu, the financial services company Robinhood Markets Inc has downsized its bid price from $170 million to $72.5 million. The US retail investment giant Robinhood was very excited about the deal when it was first announced in April this year, as purchasing the crypto trading app Ziglu would aid the company’s global growth.

Revised purchase bid by Robinhood

Robinhood has reduced its offer for Ziglu to $72.5 million, which is less than half of the previous price and may result in some early Ziglu investors losing more than 40% of their initial investment. However, if the deal fructifies, Robinhood’s second effort to enter the UK crypto market will be substantially less expensive.

Reasons for revised bid: Robinhood

The present market scenario, which has appraised most firms by 50 to 90%, prompted Robinhood’s decision to reduce its bid to purchase Ziglu. With its first inability to reach the United Kingdom roughly two years ago, Ziglu represents the best option for Robinhood to grow its footprint in the UK, leveraging its regulatory backing, client base, and innovative solutions.

Status of revised bid in Ziglu board

As per information, the Chief Executive Officer of Ziglu, Mark Hipperson, said that the revised bid has already been accepted by the company’s board. He has defended the new bid price with Crypto Winter. He also informed investors about the latest financial problems of major crypto and blockchain companies like Celsius, Voyager, and BlockFi and said that closing its current sales and purchase agreement may cause the company to be undercapitalized for a long time in a very competitive market.

Ziglu Seedrs investors suffer loss

Ziglu has raised more than £13 million from Seedrs investors in two rounds at share values of £34 in 2020 and £48.30 in 2021, respectively. The current share price as per Robinhood’s modified offer is £28.29, implying a loss of 17% to 41% to Seedrs investors.

Some of the Seedrs investors are disappointed and say that directors should be embarrassed for accepting the amended agreement. A few others termed it “disgusting behaviour from Ziglu’s board.”

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