Ascendent Partners wins China approval to buy Hollysys for $1.7 bln

Hollysys Automation Technologies

01/07/2024 14:00

July 1 (Reuters) - China-focused private equity firm
Ascendent Capital said on Monday it has obtained all approvals
in China for its proposed $1.7 billion takeover of Hollysys
Automation Technologies  HOLI.F .
    Ascendent, which holds a 13.7% stake in Hollysys as the
biggest shareholder, proposed a non-binding, all-cash offer to
buy all the remaining shares of the automation control system
provider on November 6.
    The deal, valued at $26 per share, offered a 26.2% premium
to the company's last closing price before the offer.
    Hollysys started a formal sale process advised by Deutsche
Bank  DBKGn.DE  in October, after having received acquisition
interest from multiple buyers over the last three years.
    Despite receiving a higher bid from a Dazheng Group-led
consortium in January for $29.50 per share, Hollysys agreed to
be acquired by Ascendent, citing concerns over equity financing
by Dazheng and its ability to close the transaction.

 (Reporting by Ananta Agarwal in Bengaluru; Editing by Vijay
Kishore)
 ((Ananta.agarwal@thomsonreuters.com;))