Hollysys Automation: Meta Description: The long-running saga of Hollysys Automation’s takeover is reaching a climax as China-focused Ascendent Capital Partners secures a $1.7 billion acquisition deal. This three-year journey involves multiple approaches and activist campaigns, with Hollysys finally recommending Ascendent’s $26.50 per-share offer.
However, potential twists remain, especially if a rival consortium led by Recco Control Technology and Dazheng Group Investment steps in. Shareholder approval is crucial, and the complex process has left investors skeptical, but a resolution might finally be in sight. In a dramatic turn of events, U.S.-listed Chinese firm Hollysys Automation has agreed to be acquired for $1.7 billion by China-focused Ascendent Capital Partners. This development marks the climax of a three-year-long saga during which the Beijing-based industrial automation solutions company faced multiple takeover attempts and activist campaigns.
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Hollysys’ board has given its endorsement to Ascendent’s $26.50 per-share offer, leading to a 9% surge in the company’s stock. This offer matches a proposal from a rival consortium. The deciding factor appears to be Ascendent’s perceived ability to swiftly fund and complete the deal. The drama may not be over yet, as a group led by Singapore-incorporated investor Recco Control Technology and Hong Kong’s Dazheng Group Investment has the potential to trump the latest offer. Despite the announcement, this group has not publicly commented on the deal, leaving room for further twists.
Shareholder approval is a crucial step in this process, and Hollysys has faced skepticism from investors throughout the sale journey. Calls for a special meeting to appoint more independent directors reflect shareholders’ concerns and deal fatigue. However, the prospect of a resolution is finally on the horizon. The $1.7 billion acquisition deal brings a sense of closure to the long-standing uncertainties surrounding Hollysys Automation’s fate. As the drama enters its final act, shareholders, dealmakers, and industry observers are eagerly awaiting the outcome of this complex and protracted saga.