A consortium managed by Recco Control Technology Pte. Ltd. and Dazheng Group (Hong Kong) Investment Holdings Company Limited has confirmed an optional conditional offer to acquire Hollysys Automation Technologies Ltd. This is reported in the Hollysys press release.
The transaction value is $1.55 billion ($25 per share, which is 34% higher than the closing price on August 23).
The consortium also includes TFI Asset Management Limited and Great Wall Capital Co., Ltd, which have signed a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group as part of the proposed acquisition of Hollysys.
On December 3, 2021, the consortium for the first time sent a non-binding offer to the Hollysys Board of Directors to acquire Hollysys.
On January 24, 2022, the consortium issued a press release with the proposal, and on July 8, 2023, it notified Hollysys of the involvement of the Hong Kong branch of UBS AG 1 as a financial adviser as part of the proposed transaction.
From the consortium's point of view, Hollysys management's announcement to suspend the evaluation of all unsolicited buyout offers and inaction are not in the best interests of Hollysys shareholders, given the attractive premium offered by the consortium.
The Consortium calls on the board of Hollysys to enter into the usual non-disclosure agreement and close the transaction after due diligence, as the consortium is confident in its ability to secure final obligations for the required debt and equity financing
Recco Control Technology is a Singapore–based automation investment company.
Dazheng Group is a Hong Kong investment banking company.
TFI Asset Management Limited is a Hong Kong–based asset management company that is an indirect subsidiary of Tianfeng Securities Co., Ltd. (TF Securities).
Great Wall Capital Co., Ltd. is a Chinese investment company in the structure of China Great Wall Asset Management Co., Ltd., one of the four Chinese state–owned asset management companies.
Hollysys Automation Technologies is a Chinese company in the field of automation and control. The company offers a set of solutions for industrial automation, including control and measuring devices, its own software-oriented distributed control systems, etc. Hollysys automation technologies are used in industry, railways, metro, nuclear power, as well as in mechanical engineering and electronics industry. The headquarters is located in Beijing (China).
