China-focused private equity firm Ascendent Capital said it wants to take Hollysys Automation Technologies private in a deal that will value the Chinese automation control system provider at around $1.61 billion.
Ascendent, which holds a 13.7% stake in Hollysys as the biggest shareholder, proposed a non-binding, all-cash offer to buy all the remaining Hollysys shares at $26 each, a 26.2% premium to the closing price on Nov. 3, it said in a letter to Hollysys board published on Monday.
Hollysys started last month a formal sale process advised by Deutsche Bank and said last week the financial advisor has contacted strategic and financial buyers with potential acquisition interest.
In 2021, Ascendent and Hollysys founder Changli Wang proposed to acquire the company at $23 per share in cash, followed by several offers from other interested buyers, such as Centurium Capital and Boyu Capital. Hollysys said in 2022 it had suspended considering unsolicited buyout proposals.
Source: Reuters.com