Dazheng-led consortium sets out financing for Hollysys bid (updated)

Hollysys Automation Technologies

03/02/2024 18:39

(Updates with details from statement in paragraphs 1-4, adds
background in paragraph 5-6)
       Feb 3 (Reuters) - A consortium led by China's Dazheng
Group Acquisition has set out financing for its $29.50-per-share
bid for Hollysys Automation Technologies  HOLI.F  as it battles
a rival offer from Hong Kong-based private equity firm Ascendent
Capital.
    In a statement on Saturday, the Dazheng consortium - which
also includes TFI Asset Management - said it had secured a debt
commitment letter for $1.5 billion from an unnamed China
headquartered bank's Hong Kong branch.
    It had also secured equity commitments totaling $800 million
from Dazheng Group and TFI Asset Management, it said. 
    The consortium has urged shareholders of Hollysys, an
automation control system provider, to vote against Ascendent
Capital's offer ahead of a shareholders' meeting in the coming
week, the statement added.
    Ascendent had agreed last year that it will acquire
outstanding Hollysys shares at $26.5 each in a deal valued at
around $1.66 billion.
    Last month, Hollysys said a special company committee - set
up to consider the offers - had concerns over the equity
financing by Dazheng and its ability to close a transaction,
citing changes in the equity consortium structure and Dazheng's
proposed yuan-denominated escrow account.

 (Reporting by Gursimran Kaur in Bengaluru; Editing by David
Holmes)
 ((GursimranKaur.Mehar@thomsonreuters.com;))