Hollysys to move ahead with Ascendent's takeover offer

Hollysys Automation Technologies

27/12/2023 13:24

Dec 27 (Reuters) - Hollysys Automation Technologies
 HOLI.F  said on Wednesday that it was going ahead with private
equity firm Ascendent's takeover offer valued at $1.66 billion
as it struggled to find a better bid from interested parties
during the "go-shop" period.
    The China-based automation technology provider said it
received two other offers from unnamed parties during the 15-day
go-shop period but neither of them constituted a superior
proposal.
    It was not immediately clear if one of the bidders was a
consortium led by China's Dazheng Group Acquisition.     
    Last week, the group made a $1.8 billion all-cash offer that
was well above Ascendent Capital's bid. Dazheng had also said
that its proposal was backed by "secured and credible"
financing.
    Hollysys shares were down 3.2% in trading before the bell.
    The company had agreed to be bought by Hong Kong-based
Ascendent Capital earlier this month for $26.50 per share.
Ascendent already owns a 13.7% stake in Hollysys.
    Dazheng Group was not immediately available for comment.

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