China's Hollysys forms committee to review $1.55 bln takeover offer

Hollysys Automation Technologies

02/10/2023 11:52

Oct 2 (Reuters) - 
    Hollysys Automation Technologies  HOLI.F , a China-based
maker of automation and control systems, said on Monday it had
formed a special committee to review a $1.55 billion offer from
a consortium and start a sale process. 
  
    In August, a consortium led by Recco Control Technology and
Dazheng Group Investment Holdings made an all-cash offer of $25
per share to buy the company. 
    The special committee will discuss the next steps with Recco
Control and Dazheng Group (Hong Kong) in response to the offer
to acquire the company, while expediting the process to seek
"additional serious and compelling offers," Hollysys said in a
statement. 
        Separately, Hollysys said its board had engaged with
shareholders who own 32.2% of the company following their push
for a special meeting in August amid mounting frustration with
the management for not starting a sales process. 
  
    The 30-year-old company, valued at $1.2 billion, operates in
four sectors: industrial automation, transportation automation,
medical and health care, and energy and environmental
protection. The company is listed in the United States,
incorporated in the Cayman Islands and headquartered in China.

 (Reporting by Kannaki Deka in Bengaluru; Editing by Anil
D'Silva)
 ((Kannaki.Deka@thomsonreuters.com;))