Hollysys Automation Technologies, Ltd (NASDAQ:HOLI) stock is trading higher Monday as it announced the formation of a special committee (the “Special Committee”) of the board of directors of the Company (the “Board”) to conduct a formal sale process.
The Special Committee comprises three independent directors: Dr. Kok Peng Teh, Dr. Jianyun Chai, and Ms. Khiaw Ngoh Tan.
This decision follows a review of various strategic options to maximize shareholder value.
The Special Committee will immediately engage in discussions as to next steps with Recco Control Technology and Dazheng Group (Hong Kong) Investment Holdings Company (collectively, the “Recco Consortium”) in response to the previously announced unsolicited, non-binding offer to acquire the Company at $25.00 per share in cash.
In parallel, with the assistance of the Company’s financial advisor, Deutsche Bank, the Special Committee will begin an expedited process to solicit additional serious and compelling offers.
In August, Hollysys reported fourth-quarter revenue of $195 million, an increase of 7.1% year-on-year.
Adjusted EPS was $0.43.
Price Action: HOLI shares traded higher by 4.89% at $20.81 on the last check Monday.
