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InsideArbitrage Potential Deal Alert: Investor Group Reaffirms $1.6 Billion Offer for China’s Hollysys (HOLI)

  • August 25, 2023


StockHollysys Automation Technologies Ltd.SymbolHOLI
Date Announced08/24/2023Source Bloomberg
TypeUnsolicited BidAcquiring Company/Person Ascendent Capital
Date of Confirmation: 12/11/2023Price at Confirmation: $24.81
Potential Profit: 32.39%Annualized Profit: 108.46%

According to Bloomberg, The bid group led by privately-held Recco Control Technology Pet. and Hong Kong-based Dazheng Group Investment Holdings Company Ltd. is pushing again to acquire Hollysys Automation Technologies Ltd. (HOLI) in a deal that values the Beijing-based industrial company at about $1.6 billion, a bid of $25 per share for Hollysys that it first made in 2021.

Previously in January 2022 Buyer Consortium Led by Recco Control Technology Pte. Ltd. and Dazheng Group (Hong Kong) Investment Holdings Company Limited – on December 3, 2021 announced a non-binding offer to acquire Hollysys.


August 30, 2023:  A group of shareholders in Hollysys Automation Technologies is exploring ways to ramp up pressure on the company’s board to formally consider alternative takeover offer

According to Reuters, Shareholders in China’s Hollysys Automation Technologies owning a total 32.2% of the automation control system maker’s shares asked the board of directors to set a special shareholder meeting.

September 6, 2023: Hollysys (HOLI) discloses it received a request from shareholders for a special shareholder meeting and sets Septemeber 6, 2023 as the record date for holders to demand the special meeting.

October 2, 2023: China’s Hollysys Automation Technologies , said it had set up a committee to consider a $1.55 billion takeover offer from a consortium led by Recco Control Technology and Dazheng Group Investment Holdings and look at other offers.

October 24, 2023: Hollysys Automation Technologies Ltd. (HOLI) announced that its special committee of independent directors has received a non-binding proposal from representatives of the management team, Lei Fang and Yue Xu, the company’s Co-Chief Operating Officers, to acquire all of the outstanding ordinary shares of the company they do not already own for a cash consideration of U.S. $25.00 per ordinary share as part of a taking-private transaction.

October 30, 2023: Hollysys Automation Technologies Ltd. (HOLI) announced that the Special Committee of the Board of Directors, which was established to conduct a sale process, have been in contact with multiple prospective buyers.

November 6, 2023: According to Bloomberg, Ascendent Capital Partners, a China-focused private equity firm, has made a $1.6 billion takeover bid for Hollysys Automation Technologies Ltd. after scooping up shares in the market to become its single largest shareholder. Ascendent Capital disclosed it owned a 13.7% stake.

The investment company has proposed a non-binding, all-cash offer of $26 per share to acquire all of the issued and outstanding shares of Hollysys, representing a 26% premium to the closing share price on November 3, according to a letter to the board.

November 8, 2023: Buyer consortium led by Recco Control Technology Pte. Ltd. and Dazheng Group (Hong Kong) Investment Holdings Company Limited announces that the consortium has submitted an increased all-cash offer of $26.50 per share, or approximately $1.64 billion, to acquire all outstanding shares of Hollysys Automation Technologies Ltd. (HOLI) in a letter sent to the board on November 8, 2023.

November 22, 2023: In a statement, the members of the Board stated:

The Special Committee of the Board has made positive progress with respect to the sale process and will continue the sale process in an expedited manner. The Special Committee has had productive communications with a number of bidders. Certain bidders have proceeded to the confirmatory due diligence stage, while negotiating definitive agreements in parallel. While there can be no assurances, the Special Committee is hopeful that the Company will be in a position to execute a merger agreement by mid-December and will provide timely updates to the market and shareholders.

December 11, 2023: Hollysys Automation Technologies  said  it has reached an agreement to be acquired by Hong Kong-based Ascendent Capital in an all-cash transaction valued at about $1.66 billion

December 24, 2023: A consortium led by Dazheng Group Acquisition has made a bid valued at $1.8 B to take Hollysys Automation Technologies (HOLI) private.

May 8, 2024: According to a Deal reporter, Hollysys Automation (HOLI) planned $1.66 billion sale to Ascendent Capital Partners and Superior Technologies may see a formal national security review in China.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.