Hollysys stands firm on Ascendent’s buyout agreement despite Dazheng’s superior offer
Published on: January 31, 2024.
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Hollysys Automation Technologies Special Committee Recommends Shareholders Vote for Ascendent Capital Acquisition
January 29, 2021 – Hollysys Automation Technologies, a leading provider of automation control systems, announced on Monday that its special committee has upheld its recommendation for shareholders to vote in favor of the acquisition deal proposed by Ascendent Capital. This decision comes after a consortium led by Dazheng Group presented an alternative offer that was ultimately deemed inferior.
The Dazheng Group-led consortium stated earlier in the day that it has submitted a revised proposal to acquire all outstanding shares of Hollysys, a U.S.-listed company, at a price of $29.50 per share. This offer represents an increase from their previous bid of $29 per share, which was the subject of negotiations with Hollysys’ special committee that commenced on Sunday.
In contrast, last year Hollysys reached an agreement with Ascendent Capital, a Hong Kong-based private equity firm that already holds a 13.7% stake in the company, to acquire the remaining outstanding shares at a price of $26.5 per share. This deal, valued at approximately $1.66 billion, was previously accepted by Hollysys.
The special committee of Hollysys expressed concerns regarding Dazheng’s equity financing and their ability to successfully complete the transaction. The committee cited changes in the structure of the equity consortium and Dazheng’s proposal for a yuan-denominated escrow account as reasons for their apprehension.
Hollysys Automation Technologies remains committed to ensuring the best outcome for its shareholders and will hold a vote to determine the final decision on the acquisition deal.
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Hollysys Automation Technologies Special Committee Recommends Shareholders Vote for Ascendent Capital Acquisition
January 29, 2021 – Hollysys Automation Technologies, a leading provider of automation control systems, announced on Monday that its special committee has upheld its recommendation for shareholders to vote in favor of the acquisition deal proposed by Ascendent Capital. This decision comes after a consortium led by Dazheng Group presented an alternative offer that was ultimately deemed inferior.
The Dazheng Group-led consortium stated earlier in the day that it has submitted a revised proposal to acquire all outstanding shares of Hollysys, a U.S.-listed company, at a price of $29.50 per share. This offer represents an increase from their previous bid of $29 per share, which was the subject of negotiations with Hollysys’ special committee that commenced on Sunday.
In contrast, last year Hollysys reached an agreement with Ascendent Capital, a Hong Kong-based private equity firm that already holds a 13.7% stake in the company, to acquire the remaining outstanding shares at a price of $26.5 per share. This deal, valued at approximately $1.66 billion, was previously accepted by Hollysys.
The special committee of Hollysys expressed concerns regarding Dazheng’s equity financing and their ability to successfully complete the transaction. The committee cited changes in the structure of the equity consortium and Dazheng’s proposal for a yuan-denominated escrow account as reasons for their apprehension.
Hollysys Automation Technologies remains committed to ensuring the best outcome for its shareholders and will hold a vote to determine the final decision on the acquisition deal.
