Nexo Says Acquisition Talks With Rival Would Are Falling Apart, But Not Dead Yet – Crypto News – Crypto News
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Nexo Says Acquisition Talks With Rival Would Are Falling Apart, But Not Dead Yet Nexo Says Acquisition Talks With Rival Would Are Falling Apart, But Not Dead Yet

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Nexo Says Acquisition Talks With Rival Would Are Falling Apart, But Not Dead Yet – Crypto News

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Crypto lender Nexo has reached the “enough is enough” point when it comes to its troubled bid to acquire a competitor, Vauld, the company said this week.

In a letter sent to Vauld’s creditors on Monday and reviewed by Blockworks, Nexo stopped short of calling off ongoing negotiations surrounding the long-running potential purchase. Nexo, which also operates a digital assets exchange, issued a series of amendments to what the company’s executive team is calling its final proposal for the deal.

Vauld — one of many crypto firms caught off guard by the market’s downturn earlier this year — has been in hot water for a while. The Singapore-based company slashed its workforce by about 30% in June, when it also looked to halve the compensation of some of its executives. The firm halted withdrawals the next month on the heels of its customers pulling some $200 million off its platform.

Shortly following Vauld’s pause on redemptions, Nexo, evidently sensing opportunity, came to tentative terms with Vauld in signing a prospective term sheet to acquire 100% of the company and its corresponding assets.

That original proposal has since been extended, with Nexo most recently issuing a revised version on Dec. 2.

In its latest commentary out this week, Nexo cited a laundry list of its gripes with Vauld — or “daily challenges” — in terms of coming to an agreement:

  • “Receiving slow and incomprehensive financial and legal due diligence information”
  • Outstanding issues with the administrator of the potential deal. Nexo said the entity has “seemed to be directing the solution towards an active management arrangement rather than a lending arrangement, which would expose the former creditors to risk and require them to rely on aggressive return projections to recover their losses.”
  • Purported steps to keep Nexto out of communication with stakeholders in the purchase Nexo said a “formal introduction” to the administrator occurred in mid-October, despite the lender’s requests for Vauld to facilitate an earlier introduction.
  • Alleged misrepresentation of Nexo’s terms said to be disseminated by Vauld to its creditor committee.

Representatives for Vauld did not immediately return a request for additional comment. A source familiar with the matter said the two companies have an exclusivity period of an unspecified length — meaning that talks are still continuing. The source added that Nexo is trying to make what happens to Vauld the responsibility of the lender’s creditor committee.

Kalin Metodiev, Nexo’s co-founder and managing partner, said Nexo has “not given up on its bid to purchase Vauld.”

“However, as an industry leader we are disappointed to see a handful of people with self-serving agendas trying to [hijack] the narrative and bar the creditors from making their best decisions,” Metodiev said in a statement.

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