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Dazheng Group persists in Hollysys takeover bid at $29.50 per share

2024.02.04 09:28


© Reuters.

HONG KONG – A consortium led by Dazheng Group Acquisition Limited has reaffirmed its intention to amass Hollysys Automation (NASDAQ:) Technologies Ltd. (NASDAQ: HOLI), providing shareholders a premium over the competing Ascendent Capital bid. The consortium’s unwavering provide of $29.50 per share stands as an 11.3% premium to Ascendent’s proposal, aiming to offer Hollysys shareholders with a extra assured closing.

The consortium, which incorporates Dazheng Group and TFI Asset Management Limited, has secured monetary commitments that surpass trade norms, with a $1.05 billion debt dedication from a outstanding PRC-headquartered financial institution and $800 million in fairness commitments. These commitments are backed by sturdy proof of funding, together with financial institution statements and formally executed fairness dedication letters, offering a closing certainty that the consortium claims is superior to that of Ascendent’s provide.

Negotiations between Hollysys and the consortium started on January 28, 2024, as acknowledged by the Special Committee in a proxy assertion complement. The consortium argues that the Special Committee’s recognition of their proposal implies its superiority or potential superiority over Ascendent’s bid. However, the Special Committee has not really useful an adjournment of the Extraordinary General Meeting (EGM) scheduled for February 8, 2024, to contemplate the consortium’s provide. As a consequence, the consortium is urging shareholders to vote AGAINST the Ascendent transaction to safe the opportunity of exiting at $29.50 per share.

Leading Proxy Advisors, Institutional Shareholder Services (ISS) and Glass Lewis, have really useful that shareholders vote in opposition to the Ascendent transaction, citing considerations over the gross sales course of and the Special Committee’s actions. The consortium emphasizes that rejection of the Ascendent deal wouldn’t incur a termination payment for Hollysys and maintains {that a} vote in opposition to it’s in the shareholders’ greatest curiosity.

The consortium has additionally highlighted the significance of not voting for the Ascendent transaction to protect dissenting and appraisal rights below Section 179 of the British Virgin Islands Business Companies Act. This reminder comes in mild of the lack of awareness on these rights in Hollysys’s proxy assertion.

This information relies on a press launch assertion from Dazheng Group Acquisition Limited.

This article was generated with the help of AI and reviewed by an editor. For extra info see our T&C.

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