Key points:
- A consortium led by Dazheng Group from China has proposed acquiring Hollysys Automation Technologies in an all-cash deal worth $1.8 billion.
- The consortium consists of TFI Asset Management and GA Technologies.
- The offer represents a 9.4% increase compared to a previous buyout proposal by Ascendent Capital.
A consortium led by Chinese company Dazheng Group has announced plans to acquire Hollysys Automation Technologies in a cash deal worth $1.8 billion. The consortium, which includes TFI Asset Management and GA Technologies, intends to purchase all outstanding shares of Hollysys at $29 per share. This offer represents a 9.4% increase compared to a previous buyout proposal by Hong Kong-based Ascendent Capital.
In August, another consortium led by Recco Control Technology and Dazheng Group made an all-cash offer of $25 per share to acquire Hollysys Automation Technologies. However, the new proposal by the Dazheng-led consortium offers a higher price per share and aims to acquire all outstanding shares.
This acquisition could potentially have a significant impact on Hollysys Automation Technologies and its shareholders. The company provides automation and control technology, and the acquisition could provide access to new resources and opportunities for growth.
It is important to note that this proposal is subject to approval and regulatory clearance. The deal will need to go through the necessary processes and receive the necessary approvals before it can be finalized.
The acquisition of Hollysys Automation Technologies by the Dazheng-led consortium highlights the interest of Chinese companies in acquiring international companies. In recent years, Chinese companies have been increasingly active in acquiring foreign companies as part of their expansion strategies.
In conclusion, the proposed acquisition of Hollysys Automation Technologies by the Dazheng-led consortium represents a significant development in the business landscape. The deal, if approved, could have a major impact on both companies involved and could open up new opportunities for growth and expansion. The finalization of the deal will depend on regulatory clearance and approval processes.