Buyer Consortium Led By Dazheng Group Reaffirms Commitment To Acquire Hollysys At $29.50 Per Share
Portfolio Pulse from Benzinga Newsdesk
The Dazheng Group-led Buyer Consortium reaffirms its commitment to acquire Hollysys Automation Technologies Ltd. (HOLI) at $29.50 per share, offering a superior value proposition compared to the Ascendent Capital offer. The Consortium's offer is backed by robust financing commitments and requires fewer regulatory approvals. Despite challenges in negotiations with Hollysys's Special Committee, the Consortium urges shareholders to vote AGAINST the Ascendent transaction at the EGM on February 8, 2024. Leading Proxy Advisors ISS and Glass Lewis recommend voting against the Ascendent deal, citing concerns over the sales process and the potential for greater value with the Consortium's offer.
February 04, 2024 | 6:36 pm
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POSITIVE IMPACT
The Dazheng Group-led Consortium is committed to acquiring Hollysys at $29.50 per share, offering a premium over the Ascendent Capital offer. This proposal is backed by significant financing and has received recommendations from leading proxy advisors to vote against the Ascendent deal.
The reaffirmed commitment by the Dazheng Group-led Consortium to acquire Hollysys at a premium price, backed by significant financing and fewer regulatory hurdles, presents a strong value proposition for shareholders. The support from leading proxy advisors further strengthens the case for a positive short-term impact on Hollysys's stock price, as it signals a higher likelihood of the acquisition being completed at the proposed premium price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100