China-focused Ascendent in $1.6 bln take-private bid for Hollysys

Hollysys Automation Technologies

07/11/2023 05:01

Nov 7 (Reuters) - China-focused private equity firm
Ascendent Capital said it wants to take Hollysys Automation
Technologies  HOLI.F  private in a deal that will value the
Chinese automation control system provider at around $1.61
billion.
    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 Hollysys shares at $26 each, a 26.2%
premium to the closing price on Nov. 3, it said in a letter to
Hollysys board published on Monday.
    Ascendent's latest bid comes amid a few other takeover
offers. Hollysys management team proposed last month a
consideration of $25 per share, while a buyer consortium led by
Recco Control Technology and Dazheng Group in August reaffirmed
its earlier offer with the same per-share price.
    A Hollysys representative said on Tuesday the company "is
open to serious and compelling offers from all parties".
    Hollysys started last month a formal sale process advised by
Deutsche Bank  DBKGn.DE  and said last week the financial
advisor has contacted strategic and financial buyers with
potential acquisition interest.
    In 2021, Ascendent and Hollysys founder Changli Wang
proposed to acquire the company at $23 per share in cash,
followed by several offers from other interested buyers, such as
Centurium Capital and Boyu Capital. Hollysys said in 2022 it had
suspended considering unsolicited buyout proposals. 

 (Reporting by Roxanne Liu and Kane Wu; Editing by Stephen
Coates)
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