Hollysys Shares Soar As Management-Led Consortium Reportedly Weighs Offer At 71% Premium

  • A consortium led by China's Hollysys Automation Technologies, Ltd's HOLI management aims to take the U.S.-listed automation and control system maker private in a deal at a $1.8 billion valuation, Reuters reports.
  • The consortium plans to offer about $29 per share, representing a premium of 71% to the firm's September 1 closing price of $16.96.
  • The management team, led by founder and CEO Wang Changli, has won endorsement for the deal from the municipal government of Beijing.
  • Recently, a consortium led by Recco Control Technology and Dazheng Group, reaffirmed its non-binding indicative all-cash offer of $25 per share to acquire Hollysys, which was first sent to the board on December 3, 2021, and publicly announced on January 24, 2022.
  • RelatedHollysys Shares Pop On Receipt Of Takeover Offer At 69.4% Premium
  • The Reuters report added that the consortium viewed Hollysys, listed in New York in 2008, as undervalued in the U.S. market.
  • The consortium aims to bring several financial investors into the deal, including U.S. private equity firm Warburg Pincus and Chinese venture capital firm Legend Capital.
  • The consortium has also held talks with banks to finance the deal and is about to secure loans worth at least $1 billion from Chinese lenders, led by ICBC (Asia).
  • Price Action: HOLI shares traded higher by 23.8% at $21 in the premarket on the last check Friday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Posted In: M&ANewsSmall CapMoversTechMediaTrading IdeasBriefspremarket tradingwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!