According to various reports on Jan. 5, cryptocurrency lending firm Vault has rejected a long-standing takeover offer from its larger competitor, Nexo.
In a personal letter, Vauld co-founder and CEO Darshan Bathija told Nexo that his company would reject the final proposal submitted by Nexo.
Vauld said Nexo was unable to provide its solvency assessment. He also expressed concern about how Nexo would treat his U.S.-based Vauld customers, as Nexo said in December it would stop serving residents of the country. Vauld concluded that Nexo’s revised proposal does not warrant either problem.
Bathija wrote in his dismissal letter:
“We took into account the terms of Nexo’s final offer and had further discussions. [committee of creditors], and we unanimously do not accept your proposal as is. “
The Nexo takeover offer has been under consideration since last July. Vauld was one of several companies that filed for bankruptcy last summer in the aftermath of the Celsius collapse.
However, the planned deal hit a roadblock in the months that followed, and Nexo amended its proposal multiple times. Just hours before reporting his final dismissal of Vauld on Jan. 5, Nexo issued an open letter Contains the final offer to Vault.
Nexo called the proposal “the best way forward” and “the only way forward.” The final offer would see Nexo acquire his Vauld customer base, crypto assets, customer crypto assets, cash, and various other assets and liabilities.
With this deal, Vauld customers will be onboarded as “new Nexo customers”. Also, I should have transferred the outstanding balance to an account called “New Nexo Accounts”.
Nexo also said in yesterday’s letter that it will implement a dissolution clause that forces Vald to pay $20 million.The companies originally signed a 60-day exclusivity deal, but the deal was extend later Only 30 days until October 2022. It’s unclear if the two companies have extended their contract further, or if he thinks that Vauld broke the deal earlier, Nexo.
Last month, there were conflicting reports about whether Nexo and Vault would go ahead with the planned deal. Vauld said negotiations had failed, but Nexo submitted a revised offer, suggesting it was still willing to pursue a deal.
Developments this week seem to have put an end to the dispute, with Vauld working instead with the fund manager smeared by Nexo. Based on cryptocurrency prices at the time of bankruptcy, Vauld is said to have owed his clients more than $400 million.
