Dazheng Group’s $1.8 Billion Bid for Hollysys Automation

Dazheng Group Consortium Proposes $1.8 Billion Acquisition of Hollysys Automation

In a competitive bid to gain control of automation and control technology provider, Hollysys Automation Technologies, a consortium led by Dazheng Group Acquisition, has proposed a high-stakes all-cash acquisition of $1.8 billion. Announced on Sunday, the proposal includes TFI Asset Management and GA Technologies as part of the consortium, aiming to acquire all outstanding shares of Hollysys at $29 per share.

The High-Stake Bid

The offer, marking a 9.4 percent increase from a previous buyout offer by Ascendent Capital in December, represents a strategic move to secure a superior position in the automation industry. The high-stakes proposal is backed by credible financing and offers an attractive premium for Hollysys shareholders. Moreover, the consortium has expressed confidence in obtaining the necessary regulatory approvals and has secured debt financing, along with equity funding from consortium members and equity financing partners.

History of Competitive Bidding

This new bid follows an offer in August by another consortium, including Recco Control Technology and Dazheng Group, which proposed to purchase Hollysys at $25 per share. This proposal shows an increased intent and a stronger financial commitment from Dazheng Group and its partners, underpinning their dedication to secure the acquisition of Hollysys Automation Technologies.

Awaiting Response

Hollysys Automation, a leading provider of automation and control technology, has yet to respond to the new acquisition bid. The consortium, prepared to swiftly commence confirmatory due diligence, is geared up to enter into a merger agreement prior to January 22, 2024. The maneuvering in the acquisition proposal reflects the high value and strategic importance placed on automation technology in today’s digital economy.