- A Chinese-led consortium Hollysys Automation Technologies, Ltd HOLI Management intends to privatize the US-listed automation and control systems manufacturer in a deal valued at $1.8 billion. Reuters reports.
- The consortium plans to offer about $29 per share, a 71% premium to the company’s Sept. 1 closing price of $16.96.
- The management team, led by Founder and CEO Wang Changli, has received approval of the transaction from the Beijing Municipal Government.
- Latelya consortium led by Recco Control Technology and Dazheng Group, reiterated its non-binding indicative cash offer of $25 per share to acquire Hollysys, first submitted to the board on December 3, 2021 and publicly announced on January 24. 2022.
- Related: Hollysys shares rise at a premium of 69.4% on takeover offer
- The Reuters report added that the consortium viewed Hollysys, which was listed in New York in 2008, as undervalued in the US market.
- The consortium plans to bring several financial investors into the deal, including US private equity firm Warburg Pincus and Chinese venture capital firm Legend Capital.
- The consortium has also been in talks with banks to fund the deal and is on the verge of receiving at least $1 billion worth of loans from Chinese lenders led by ICBC (Asia).
- Price promotion: HOLI shares traded 23.8% higher to $21 on the most recent check Friday premarket.
- Photo via company
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