More US-China take-privates could get feisty

VNET

14/11/2023 01:53

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Anshuman Daga
       SINGAPORE, Nov 14 (Reuters Breakingviews) - A bidding
war has erupted for $1.4 bln Nasdaq-listed industrial automation
solutions firm Hollysys. One would-be buyer even staged a dawn
raid. If a deal succeeds, minority owners of undervalued peers
could push for more value, too, as Chinese companies bid
farewell to the US.

    Full view will be published shortly.
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    CONTEXT NEWS 
    China-focused buyout firm Ascendent Capital Partners on Nov.
6 revealed it had acquired a 13.7% stake in Nasdaq-listed
Hollysys Automation Technologies and proposed a non-binding
offer to take the Beijing-based company private in a deal
valuing its equity at $1.6 billion. The $26 per share cash offer
represents a 26% premium to the closing price on Nov. 3.
    On Nov. 8, a buyout consortium led by Singapore-incorporated
investor Recco Control Technology and Hong Kong’s Dazheng Group
Investment submitted a higher offer of $26.5 per share. Shares
of Hollysys closed at $22.2 on Nov. 10. The company also
received a management-led takeover offer at $25 a share in
October. 
    Hollysys said on Oct. 30 that it is in talks with multiple
prospective buyers and a preferred bidder is set to be
identified as early as December.

 (Editing by Una Galani and Thomas Shum)
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