- A consortium led by China’s Hollysys Automation Technologies, Ltd’s (NASDAQ:HOLI) management aims to take the U.S.-listed automation and control system maker private in a deal at a $1.8 billion valuation, Reuters reports.
- The consortium plans to offer about $29 per share, representing a premium of 71% to the firm’s September 1 closing price of $16.96.
- The management team, led by founder and CEO Wang Changli, has won endorsement for the deal from the municipal government of Beijing.
- Recently, a consortium led by Recco Control Technology and Dazheng Group, reaffirmed its non-binding indicative all-cash offer of $25 per share to acquire Hollysys, which was first sent to the board on December 3, 2021, and publicly announced on January 24, 2022.
- Related: Hollysys Shares Pop On Receipt Of Takeover Offer At 69.4% Premium
- The Reuters report added that the consortium viewed Hollysys, listed in New York in 2008, as undervalued in the U.S. market.
- The consortium aims to bring several financial investors into the deal, including U.S. private equity firm Warburg Pincus and Chinese venture capital firm Legend Capital.
- The consortium has also held talks with banks to finance the deal and is about to secure loans worth at least $1 billion from Chinese lenders, led by ICBC (Asia).
- Price Action: HOLI shares traded higher by 23.8% at $21 in the premarket on the last check Friday.
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