Hollysys still backs Ascendent's buyout deal despite Dazheng's higher bid (updated)

Hollysys Automation Technologies

30/01/2024 02:54

(Write through with details and context)
       Jan 29 (Reuters) - Hollysys Automation Technologies
 HOLI.F  said on Monday its special committee has retained a
recommendation that shareholders vote for Ascendent Capital's
acquisition deal as  the offer from a Dazheng Group-led
consortium was not superior. 
    A consortium led by Dazheng Group earlier on Monday said it
has proposed to acquire all outstanding shares of the U.S.
listed Hollysys at $29.50 each, up from its previous offer of
$29, in negotiations with the special committee that started on
Sunday. 
    The Chinese automation control system provider said last
year it had agreed that Hong Kong-based private equity firm
Ascendent Capital, which already owns a 13.7% stake in the
company, will acquire the outstanding Hollysys shares at $26.5
each in a deal valued around $1.66 billion.
    Hollysys said its special committee has concerns over equity
financing by Dazheng and its ability to close a transaction,
citing changes in equity consortium structure and Dazheng's
proposed yuan-denominated escrow account.


 (Reporting by Rishabh Jaiswal in Bengaluru and Roxanne Liu in
Beijing; Editing by Sherry Jacob-Phillips and Shri Navaratnam)
 ((rishabh.jaiswal@thomsonreuters.com;))